Feb 7, 2023
India Plans Rush of Long-Term LNG Deals to Speed Shift From Coal
(Bloomberg) -- India is looking to sign many more long-term deals to buy liquefied natural gas to help power its economic growth.
Petronet LNG Ltd., India’s biggest gas importer, wants to secure 12 million tons a year of additional supply under long-term contracts, Managing Director Akshay Kumar Singh said Tuesday in Bengaluru at India Energy Week. That’s equivalent to about 60% of the nation’s deliveries last year, according to ship-tracking data.
New Delhi is trying to boost its LNG import capacity to increase the share of natural gas in its coal-heavy electricity mix to 15% by 2030 from about 6% now, Prime Minister Narendra Modi said Monday.
India will face competition from other importers eager to sign long-term deals to reduce their exposure to the kind of volatility that saw spot prices soar to a record last year. The LNG market will remain tight until 2026, Satinder Pal Singh, chief executive officer of Adani Total Private Ltd., said at the conference.
Petronet is also aiming to extend an existing contract with Qatar, and will request as much as 1 million tons a year more from the Middle Eastern supplier. Petronet’s proposed Gopalpur LNG import terminal and an expansion at its existing Dahej plant are set to come online later this decade.
Meanwhile, Gail India Ltd. is in discussions with Abu Dhabi National Oil Co. and Russia’s Novatek PJSC for long-term deals, Chairman Sandeep Kumar Gupta said at the conference.
--With assistance from Stephen Stapczynski.
(Updates with details throughout.)
©2023 Bloomberg L.P.