Petronet in talks with Qatar for LNG deal renewal amid turbulent markets

NEW DELHI, Might 12 (Reuters) – India’s Petronet LNG (PLNG.NS) has begun talks with Qatar to resume a multi-year fuel deal regardless of market “turbulence”, making new long-term contracts troublesome as sanctions on Russian gasoline have squeezed an already tightly equipped market.

India’s high fuel importer has until end-2023 to resume its long-term liquefied pure fuel (LNG) take care of Qatar Fuel to past 2028, its head of finance Vinod Kumar Mishra instructed an analyst name after the Petronet introduced quarterly earnings.

He mentioned it was not a “good atmosphere” to provoke new long-term offers as market was tight and European firms have been aggressively scouting for contracts to chop dependence on Russia after Moscow’s invasion of Ukraine.

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Qatar is already in talks with Germany for long-term fuel provides, serving to Europe’s largest economic system lower dependence on Russian power sources. learn extra

Petronet, nonetheless, hopes Qatar would decrease fuel costs for India, mirroring contracts signed with Bangladesh, Pakistan and China, the place costs are linked to a slope of 10.2% of the Brent crude.

In distinction, India’s current LNG take care of Qatar relies on a slope of about 12.67% of the Brent worth.

“We’ve already began negotiations however the atmosphere is just not like that individuals might comply with it due to lot of turbulence available in the market,” he mentioned, including his firm would purchase extra volumes if Qatar provided beneficial pricing phrases.

Attributable to excessive spot LNG costs some Indian clients have switched to different fuels, he mentioned.

India’s fuel demand is ready to surge as Prime Minister Narendra Modi goals to lift the share of pure fuel within the nation’s power combine to fifteen% from 6.7%.

Mishra mentioned latest authorities determination mandating GAIL (India) Ltd (GAIL.NS) to import fuel for assembly rising demand from transport and households sector would assist improve utilisation of capability at its terminals and lift the corporate’s income. learn extra

Earlier within the day, Petronet’s chief govt A.Okay. Singh additionally mentioned Petronet is on the lookout for 0.75-1 million tonne of LNG in fast time period to fulfill the rising demand.

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Reporting by Nidhi Verma; modifying by David Evans

Our Requirements: The Thomson Reuters Belief Ideas.

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