India’s Petronet Likely to Renew Qatar LNG Contract in January

(Bloomberg) -- Petronet LNG Ltd, India’s largest liquefied natural gas buyer, will likely renew a big supply contract with Qatar by the end of January, a senior government official said Wednesday.

Petronet’s 25-year contract with Qatar for 7.5 million tons of LNG a year is supposed to be renewed five years before expiration in 2028, said the official, who is familiar with the contract and asked not to be identified because the information isn’t public.

The deal got delayed beyond an end-of-December target due to its complex nature, the official added. A new deal could last for decades, which is often a requirement when buying from Qatar.

Qatar is building an enormous expansion to its LNG export facility, which will start later this decade, and extending its commitment to India will help to lock in a key buyer. QatarEnergy didn’t immediately respond to an emailed request for comment.

©2024 Bloomberg L.P.