Betul (Goa), Jan 28 (PTI) State-owned Bharat Petroleum Corporation Ltd (BPCL) is seeking four to eight shiploads of liquefied natural gas (LNG) per year starting 2026 for a tenure of 10 years as it looks
to augment supplies to meet rising gas demand.
The company is seeking four cargoes for the calendar years 2026-2029 and then eight a year for the calendar years 2030-2035, officials said.
BPCL had in February last year signed a five-year deal with Abu Dhabi's ADNOC Gas to receive 40 cargoes or shiploads of LNG totalling 2.5 million tonnes, starting in April 2025. The supply under this agreement will initially be lower and will increase gradually over the first two years.
The new LNG deals that BPCL is seeking prices the gas at different benchmark indices, officials said.
LNG is being sought in a band of USD 6 per million British thermal units (mmBtu) (floor or minimum price) and a ceiling of USD 14 per mmBtu.
For the years 2026 to 2028, LNG is to be priced at 50-50 weightage to Japan Korea Marker (JKM) and Dated Brent 301 (average of Dated Brent over the preceding three months). From 2029 through 2035, the formula shifts to a structure allocating 75 per cent weight to a crude-linked slope and 25 per cent to a Henry Hub-linked formula.
Officials said BPCL is looking to broaden its LNG sourcing portfolio to ensure competitive and dependable gas supplies to cater to India's rising energy needs.
The company needs gas in its own oil refineries as well as to feed the fast growing city gas network supplying CNG to automobiles and piped gas to households for cooking and industries.
With domestically produced natural gas barely meeting half the country's demand, India imports the fuel used to generate electricity, produce fertiliser and power city gas, in its supercooled liquid form (LNG).
As a lower-carbon energy source, LNG plays a critical role in global efforts to transition to cleaner energy solutions. India is targeting to raise the share of natural gas in its energy basket to 15 per cent by 2030 from current 6 per cent.
BPCL owns a 12.5 per cent stake in Petronet LNG Ltd, India's largest LNG importer. It holds marketing rights for 10 per cent of the 7.5 million tonnes a year LNG imported at Petronet's main Dahej terminal in Gujarat. It has a higher stake in the capacity of the 5 million-tonne Kochi terminal, with marketing rights for 40 per cent of the LNG supplied there. PTI ANZ DR
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