Team Blitz India
NEW DELHI: India on signed a $ 78 billion deal on February 6 to extend LNG imports from Qatar by another 20 years till 2048 at rates lower than current prices.
Petronet LNG Ltd, India’s biggest liquefied natural gas (LNG) importer, in a statement said it has signed a pact with QatarEnergy to extend the deal to buy 7.5 million tonne a year of gas for producing electricity, making fertilizers and converting it into CNG.
Sources said the renewal is at a significantly lower price than the current deal. At current prices, India will save about $ 0.8 per million British thermal unit at the renewed terms. This translates into savings of $6 billion over the contract period.
Petronet imports 8.5 million tonne per annum (MTPA) of LNG from Qatar under two contracts. The first 25-year deal is to expire in 2028 and has now been extended for 20 additional years. The second deal for 1 MTPA entered into in 2015, will be negotiated separately, sources said.
