Petronet LNG Looking To Extend Purchase Deal With Qatar Beyond 2028: Report

Oil and gas company Petronet LNG’s head of finance VK Mishra has affirmed that the company is targeting to extend its agreement pertaining to purchase of liquefied natural gas (LNG) from Qatar to beyond 2028.

As per the current deal, Petronet will acquire 7.5 million tonnes of LNG from Qatar on an annual basis until 2028.

However, Mishra has revealed that the company will carry out negotiations to further lengthen the contract along with addition of some new terms and conditions from 2023 onward.

The overall demand of gas in the country is likely to shoot up with the government aiming to substantially escalate the overall share of cleaner fuel in the nation’s energy mix from 6.2 per cent currently to 15 per cent in 2030.

On similar lines, Petronet is set to establish its third import terminal for LNG on the eastern coast of the country to further add up to its capacity.

Petronet is also carrying out an assessment of gas demand prior to placing its orders for construction of this project that will perhaps commence in the coming year.

“It is a good contract and perhaps we will be able to negotiate with them,” Mishra was quoted as saying about the deal with Qatar in a report by the Reuters.