- Petronet LNG will receive full contract value after Middle East tensions ease
- Qatar halted annual 7.5 million MT LNG supply due to regional conflicts
- Strait of Hormuz closure and Iranian strikes stopped 9-10 monthly cargoes
Prominent gas importer of India, Petronet LNG, will receive the total value agreed in the contract of liquefied natural gas after the Middle East tensions de-escalation, the company's chief executive A K Singh was reported as saying on Monday.
Qatar, India's main LNG supplier, has paused its yearly 7.5 million metric ton supply to Petronet due to a sharp rise in regional tensions. The regular flow of 9 to 10 monthly cargoes ground to a halt this March after the closure of the Strait of Hormuz was compounded by targeted Iranian strikes on two of Qatar's 14 liquefaction trains.
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Singh confirmed that Qatari officials have issued a force majeure notice for May deliveries, warning that essential repairs following recent infrastructure damage will sideline 12.8 million tons of annual production capacity for the next three to five years.
While Singh expressed optimism during a recent press conference that long-term supplies might remain intact despite the current halt in shipments, the company is aggressively pivoting toward energy security by expanding its domestic infrastructure. "We hope and expect our supplies will not be cut," Singh reportedly said.
This strategic build-out includes three new storage tanks currently under construction at the Kochi and eastern import terminals, alongside a new search for land to host four additional units near the massive 22.5-million-ton Dahej facility in Gujarat.
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