New Delhi [India], February 6 : Petronet LNG Limited (PLL) has made an announcement regarding the execution and renewal of a 7.5 Million Metric Tonnes Per Annum (MMTPA) LNG long-term contract between PLL and QatarEnergy.
According to a press release, this renewal marks a continuation of the longstanding partnership between the two entities and underscores India's commitment to secure a stable and reliable supply of liquefied natural gas (LNG) to meet its growing energy needs.
The contract renewal, dated 6th February 2024, signifies a significant milestone in PLL's efforts to ensure uninterrupted access to LNG supplies for the Indian market.
Under the renewed long-term contract, PLL and QatarEnergy will continue their collaboration to supply 7.5 MMTPA of LNG to India, with IndianOil holding a 12.5 per cent equity share in PLL.
This contract renewal builds upon the foundation laid in 1999 when PLL and QatarEnergy first entered into an agreement. Since then, IndianOil has been offtaking 30 per cent share, equivalent to 2.25 MMTPA, of the LNG volumes from PLL.
Maintaining the same arrangement, IndianOil will continue to off-take its 30 per cent share (~2.25 MMTPA) of the volumes from PLL in the renewed long-term contract, substantially on a back-to-back basis.
The exact mechanism and arrangements for offtaking the subject volume are currently under discussions between PLL and IndianOil, signifying the meticulous planning and coordination required to ensure smooth operations and delivery of LNG supplies.
Petronet LNG Limited, a prominent entity in India's gas sector, was established as a Joint Venture Company (JVC) of leading Oil and Gas PSUs, including Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation Limited (IOCL), GAIL India Limited, and Bharat Petroleum Corporation Limited (BPCL).
Collectively, these entities hold 50 per cent shareholding in PLL. PLL has played a pivotal role in enhancing India's energy security by setting up the country's first LNG receiving and regasification terminal at Dahej, Gujarat, with a present nominal capacity of 17.5 MMTPA, and another terminal at Kochi, Kerala, with a nominal capacity of 5 MMTPA.
IndianOil, a diversified and integrated energy major, boasts a significant presence across various segments of the oil and gas industry.
As the largest refiner in the country, IndianOil has established itself as a leader in petroleum marketing, distribution, gas marketing, alternate energy, and petrochemicals.
The company's contribution to India's energy landscape is instrumental in driving economic growth and sustainability.
The renewal of the LNG contract underscores the strategic partnership between PLL and QatarEnergy, further strengthening India's energy security and paving the way for continued growth and development in the gas sector.
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