NewsOrders & DealsQatarEnergy Inks 17-Year LNG Supply Deal with India's GSPC, Boosting Energy TiesQatarEnergy Inks 17-Year LNG Supply Deal with India's GSPC, Boosting Energy Ties
Gujarat State Petroleum Corporation (GSPC) has signed a 17-year agreement with QatarEnergy for the supply of up to 1 million tonnes per annum of LNG, starting from 2026. This marks GSPC's second long-term contract with QatarEnergy, following their initial 2019 deal. India, currently the fourth-largest global LNG importer, aims to increase its import capacity from 52.70 million tonnes to 66.70 mtpa by 2030. The deal aligns with India's growing energy demands and shift towards cleaner energy sources.
*this image is generated using AI for illustrative purposes only.
Gujarat State Petroleum Corporation (GSPC) has secured a significant long-term agreement with QatarEnergy, marking a substantial development in India's liquefied natural gas (LNG) import strategy. This deal underscores the growing energy partnership between Qatar and India, as well as India's increasing reliance on LNG imports to meet its energy needs.
Key Details of the Agreement
- Duration: 17 years
- Supply Volume: Up to 1 million tonnes per annum (mtpa) of LNG
- Commencement: Starting from 2026
- Delivery Method: Ex-ship directly to Indian terminals
Significance of the Deal
This agreement represents the second long-term LNG supply contract between QatarEnergy and GSPC, following their initial deal in 2019. The repeated collaboration highlights the strengthening energy ties between Qatar and India, and GSPC's strategic role in securing long-term energy supplies for the country.
India's LNG Infrastructure and Import Plans
| Aspect | Details |
|---|---|
| Current LNG Terminals | 8 |
| Annual Capacity | 52.70 million tonnes |
| Import Increase Target | 27% by 2030 |
| Projected Capacity by 2030 | 66.70 mtpa |
India's ambitious plans to expand its LNG import capacity reflect the country's growing energy demands and its shift towards cleaner energy sources.
Recent Developments in India's LNG Imports
In February 2024, Petronet LNG Ltd, another key player in India's energy sector, renewed its contract with QatarEnergy. This renewal extends the supply agreement until 2048, with the following breakdown:
- Total Supply: 7.50 mtpa
- GAIL India's Share: 4.50 mtpa (through Petronet)
India's Global LNG Import Standing
India currently ranks as the fourth-largest LNG importer globally, accounting for 7% of worldwide LNG imports. This position underscores India's significant role in the global LNG market and its increasing reliance on imported natural gas to meet domestic energy requirements.
The latest agreement between QatarEnergy and GSPC further solidifies India's commitment to securing long-term energy supplies, supporting its economic growth and transition to cleaner energy sources. As India continues to expand its LNG infrastructure and import capacity, such agreements will play a crucial role in ensuring energy security and supporting the country's growing energy needs.
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