India’s leading natural gas firm GAIL (India) Ltd will soon close a long-term liquefied natural gas (LNG) import deal with Qatar to purchase at least 1 million metric tons per year, potentially for more than 20 years, Reuters News reported.
The deal would be part of GAIL’s plans to lock in new supply contracts by 2030, to diversify its gas imports, and hedge against supply disruptions – especially after Russia’s invasion of Ukraine last year, when LNG prices surged to a record high, as per the report.
The company is also expanding its presence in renewable energy sectors such as solar, wind and biofuel. GAIL will be the second India-based company to sign a deal with Qatar after Petronet LNG.
Petronet will be extending its long-term gas import deal with Qatar at lower prices, than the price offered to China and Bangladesh by the world’s top liquefied natural gas (LNG) exporter, Reuters reported earlier this week.
The Qatar deal with GAIL India would strengthen prospects for the renewal of Petronet’s deal at better pricing, said one of the sources to Reuters. Further, adding that India’s target is to sign two deals by the end of September.
