Qatar and India sign the world’s biggest Liquid Natural Gas deal.

• Qatar plans to increase its total liquefication of natural gas from 77 million to 126 million tons per year.
• India and Qatar signed a 20-year deal to supply 7.5 million metric tons per year of LNG.
• India is trying to increase its natural gas consumption to 15% of its total energy mix, while Qatar is India’s largest provider for LNG (liquified natural gas).

Qatar signed with India’s Petronet LNG Ltd on Thursday, the biggest liquified natural gas deal in history, Qatar will supply 7.5 metric tons per year of liquified natural gas to Petronet LNG from 2028 to 2048 in efforts to penetrate the energy markets in Asia and Europe.

Qatar, the world’s second-largest LNG exporter, plans to increase its liquefaction capacity from 77 million to 126 million tons per year by 2027.

An agreement was reached on Tuesday to renew an existing deal that was set to expire in 2028. As per the agreement, Petronet LNG will continue to import 7.5 million metric tons of LNG from Qatar on a free-on-board basis, the LNG will be priced at a slope of 12.67% of the current Brent crude oil futures prices, with a fixed charge of 52 cents per million British thermal units without clarifying if the pricing terms and conditions will be changed or not.

Petronet LNG CEO, Akshay Kuman Singh said that QatarEnergy accounts for 35% of India’s LNG imports, according to data from LSEG, India imported 10.6 million tons of LNG from Qatar in 2023 from its total imports of 20.8 million tons.

Natural gas in 2022 was comprised of 46% coal, 24% oil, 21% biomass, natural gas 5% and primary electricity 4% and it currently plans to increase the share of natural gas in its energy mix to 15% by 2030.

Qatar’s energy minister Saad al-Kaabi said “We are here to serve the market in India and we hope to be part of the expansion of the economy and requirements and the energy sector.”