GAIL is nearing finalization of a substantial LNG import deal with Qatar, spanning 20+ years at 1 million metric tons annually. GAIL is poised to be India’s second firm in a Qatar pact after Petronet.
Aug 3, 2023
GAIL is reportedly nearing closure on a 1 million metric tons per year LNG import deal with Qatar, lasting for more than 20 years. The deal would be aligned with GAIL’s future plans to diversify its gas imports by 2030 and to protect itself against supply disruptions due to LNG price surges. GAIL, India’s largest pipeline operator, is poised to become the second domestic company to enter into an agreement with Qatar. Petronet, partially owned by GAIL, is also trying to renew its long-term LNG deal ending in 2028 where Petronet buys 8.5 million tons per year (TPY) of LNG from Qatar.
India’s target is to sign the two deals by late September. An agreement involving GAIL and Qatar would reportedly enhance the chances of Petronet’s contract renewal with improved pricing. According to Mr. Rakesh Jain, Head of Finance, GAIL is also looking to buy 5.8 million TPY from the US and a 2.5 million TPY from SEFE, the former German Gazprom unit to reduce its dependency on one country to avoid the risk of sudden disruption in LNG supply.