LONDON/DUBAI: Qatar Power inside weeks might signal a long-term deal to offer liquefied pure fuel (LNG) to Indian consumers on cheaper and extra versatile phrases than current contracts, commerce sources mentioned, as India seeks to satisfy a purpose to extend the gasoline’s use.
The Indian corporations and Qatar Power have agreed on phrases and a contract could possibly be signed by the tip of this month or early in February, one of many sources mentioned, including the contract providing destination-flexible cargoes and decrease pricing, would run till no less than 2050, probably longer.
It might prolong contracts set to run out in 2028 for the availability of 8.5 million metric tons per yr (tpy) LNG to Indian consumers and play an element in assembly Prime Minister Narendra Modi’s purpose to lift the share of pure fuel within the nation’s vitality combine to fifteen% by 2030 from 6.3% now.
The Indian corporations and Qatar Power didn’t reply to requests for remark.
Qatar, which goals to broaden its liquefaction capability to 126 million tpy by 2027 from 77 million, is eager to play a bigger position in Asia and Europe as competitors from US provide will increase.
Final yr, Qatar signed long-term offers with European majors Shell, TotalEnergies and ENI.
Qatari LNG is usually priced in relation to grease, utilizing a method primarily based on a slope, or share of crude.
One of many sources mentioned the deal is more likely to be finalised at a worth of round a 12% slope of Brent per million metric British thermal unit (mmBtu). A second supply gave a spread of 12-12.5% for provides on a free-on-board foundation for India.
The second supply mentioned a deal could possibly be signed throughout an vitality convention in India from Feb. 6-9.
Not one of the sources could possibly be named as a result of they weren’t authorised to talk publicly.
Underneath an current deal, India’s high fuel importer Petronet LNG imports 7.5 million tpy of LNG from Qatar on a delivered foundation with slope of 12.67% and a set cost of 52 cents.
Moreover, corporations together with state-run Indian Oil Corp , Bharat Petroleum and GAIL (India) – which maintain stakes in Petronet – purchase a mixed 1 million tpy of LNG on the similar worth.
The brand new deal will permit the Indian consumers to determine which terminal in India will obtain cargoes, a 3rd supply mentioned. Underneath current offers, Qatar delivers LNG to western Gujarat state.
The supply added the liberty to determine on the arrival terminal might save Indian consumers pipeline transportation prices throughout the Indian grid.
Petronet chief govt AK Singh final yr mentioned his firm might get a worth decrease than the 12-13% slope of Brent supplied by Qatar to China and Bangladesh.
The Indian corporations and Qatar Power have agreed on phrases and a contract could possibly be signed by the tip of this month or early in February, one of many sources mentioned, including the contract providing destination-flexible cargoes and decrease pricing, would run till no less than 2050, probably longer.
It might prolong contracts set to run out in 2028 for the availability of 8.5 million metric tons per yr (tpy) LNG to Indian consumers and play an element in assembly Prime Minister Narendra Modi’s purpose to lift the share of pure fuel within the nation’s vitality combine to fifteen% by 2030 from 6.3% now.
The Indian corporations and Qatar Power didn’t reply to requests for remark.
Qatar, which goals to broaden its liquefaction capability to 126 million tpy by 2027 from 77 million, is eager to play a bigger position in Asia and Europe as competitors from US provide will increase.
Final yr, Qatar signed long-term offers with European majors Shell, TotalEnergies and ENI.
Qatari LNG is usually priced in relation to grease, utilizing a method primarily based on a slope, or share of crude.
One of many sources mentioned the deal is more likely to be finalised at a worth of round a 12% slope of Brent per million metric British thermal unit (mmBtu). A second supply gave a spread of 12-12.5% for provides on a free-on-board foundation for India.
The second supply mentioned a deal could possibly be signed throughout an vitality convention in India from Feb. 6-9.
Not one of the sources could possibly be named as a result of they weren’t authorised to talk publicly.
Underneath an current deal, India’s high fuel importer Petronet LNG imports 7.5 million tpy of LNG from Qatar on a delivered foundation with slope of 12.67% and a set cost of 52 cents.
Moreover, corporations together with state-run Indian Oil Corp , Bharat Petroleum and GAIL (India) – which maintain stakes in Petronet – purchase a mixed 1 million tpy of LNG on the similar worth.
The brand new deal will permit the Indian consumers to determine which terminal in India will obtain cargoes, a 3rd supply mentioned. Underneath current offers, Qatar delivers LNG to western Gujarat state.
The supply added the liberty to determine on the arrival terminal might save Indian consumers pipeline transportation prices throughout the Indian grid.
Petronet chief govt AK Singh final yr mentioned his firm might get a worth decrease than the 12-13% slope of Brent supplied by Qatar to China and Bangladesh.
