Sources in the trading industry informed Reuters on Friday that Qatar Energy is likely to sign a long-term agreement within weeks to provide liquefied natural gas (LNG) to Indian buyers at more competitive prices and with more flexible terms than existing contracts. India aims to increase its use of natural gas, and this move is part of that initiative.
According to a reliable source, Indian companies and Qatar Energy have reached an agreement on certain terms, and the contract is likely to be signed by the end of January or early February. The new agreement will provide the flexibility to ship to different destinations at lower prices and will be valid until at least the end of 2050, with the possibility of an extension beyond that period.
The new deal will extend existing contracts set to expire in 2028, supplying 8.5 million metric tons of LNG annually to Indian buyers. This agreement aligns with Prime Minister Narendra Modi’s goal to increase the share of natural gas in the country’s energy mix to 15% by 2030, up from the current 6.3%.