The authorities is probably going to ink a multi-billion-dollar agreement on Tuesday to lengthen LNG imports from Qatar till 2048, with charges anticipated to be decrease than present costs, in accordance to sources.
The deal can be signed between Petronet LNG Ltd and QatarEnergy throughout India Energy Week in Betul, Goa.
Currently, Petronet imports 8.5 million tonnes of LNG yearly from Qatar underneath two contracts, considered one of which is ready to expire in 2028. This agreement is being prolonged for a further 20 years. The second contract, for 1 million tonne per 12 months, can be negotiated individually.
India, the world’s third-largest power shopper, views pure gasoline as a transitional gas in its journey in direction of reaching internet zero carbon emissions by 2070. The authorities goals to enhance the share of pure gasoline within the nation’s power combine to 15 p.c by 2030, up from the present 6.3 p.c.
Sources reveal that the brand new contract’s pricing construction can be linked to the prevailing Brent crude oil costs, with a big discount within the mounted cost part. Additionally, Qatar has agreed to convert the deal from Free on Board (FOB) to Delivered Ex Ship (DES), thus assuming duty for delivery, leading to financial savings of USD 0.30 per mmBtu on delivery prices.
Furthermore, the brand new agreement will grant Indian consumers the pliability to choose the terminal in India the place the LNG cargoes can be obtained, as opposed to the present association the place deliveries are made to Dahej in Gujarat. This flexibility is predicted to cut back pipeline transportation prices throughout the Indian grid.’
(With PTI inputs)
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