India is poised to ink a multi-billion dollar agreement on Tuesday, extending the import of 7.5 million tonnes of LNG per year from Qatar for an additional 20 years beyond 2028, according to sources.
The deal, to be signed by Petronet LNG Ltd during India Energy Week, is expected to offer rates lower than current prices. Sources have indicated that the agreement with Qatar Energy will secure prices significantly lower than the present rates.
Qatar, the world's top LNG exporter, aims to expand its liquefaction capacity to 126 million tpy by 2027 from 77 million and has signed long-term deals with European majors Shell, TotalEnergies and ENI. It has also signed long-term gas deals with China's Sinopec, China National Petroleum Corp and Bangladesh.