Petronet LNG Secures Gas Supply From Qatar Till 2048
The 20-year pact extends a 1999 LNG supply contract to 2028. Supplies under the new arrangement begin in 2028 and last until 2048.
Petronet LNG Ltd. has signed a long-term deal with Qatar Energy for purchase of about 7.5 million metric tonne of liquified natural gas per annum.
Existing Deal
This deal is a renewal of an existing agreement signed between the two companies on July 31, 1999, and is set to expire in April 2028, according to an exchange filing.
Under the existing deal Petronet LNG imports 7.5 million metric tonne per year of LNG from Qatar on a free-on-board basis, priced at a slope of 12.67% of the current Brent crude oil futures prices and a fixed charge of 52 cents per million British thermal units, the company said in the filing.
Renewed Deal
The new agreement entails deliveries commencing from May 2028 for a duration of 20 years with supplies on a delivered basis. The official company statement did not mention if the pricing terms are the same as the exisiting deal.
The Beneficiaries
The volumes imported under the new LNG SPA will off taken by Gail (India) Ltd., Indian Oil Corp. and Bharat Petroleum Corp., who are equity partners of Petronet LNG, which is a joint venture undertaken by the three companies as well as Oil and Natural Gas Corp.
Gail (India) will be allocated the most from the LNG imports by about 60%, followed by Indian Oil and BPCL with 30% and 10% offtakes, respectively, primarily from Petronet LNG's Dahej Terminal on a substantially back- to- back basis.