Petronet, India’s largest gas importer, is seeking 1 million tonnes per year in additional liquefied natural gas (LNG) supplies when it renews its long-term deal with Qatar, the company’s chief executive said on Tuesday, Reuters reported.
“We are seeking an additional 0.75 to 1 mtpa on top of existing 8.5 mtpa contact,” Chief Executive A.K. Singh told reporters on the sidelines of the Indian Energy Week conference.
Petronet has until the end of this year to renew its contract with Qatar, where it is currently acquiring LNG at a price of $16 per million British thermal units.
India’s LNG imports decreased for the second straight year in 2022, primarily as a result of utilities purchasing less LNG as the nation increased the production of coal-fired electricity at the expense of natural gas.
The energy-starved country anticipates that increased city gas distribution would increase demand for LNG in the upcoming years.
According to Singh, Petronet will receive an additional 0.6 mtpa from Exxon Mobil Corp’s (XOM.N) Gorgon project in Australia between 2025 and 2026. Petronet presently purchases 1.42 mtpa of LNG from the project.
The gas importer plans to open its first terminal on India’s east coast as part of its effort to increase the capacity of its LNG terminals by more than 53% in the next years.
“We are looking for 12 million tonnes of additional LNG (capacity) – 3 for Kochi, 4 for Gopalpur and 5 mtpa for Dahej,” Singh said.
Due to incomplete pipeline connectivity, the Kochi terminal is now operating at a reduced capacity, he said.