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HomeOil and GasIndia Secures LNG Supply from Qatar Energy

India Secures LNG Supply from Qatar Energy

India is strengthening its energy supply by securing LNG from Qatar Energy Trading. GAIL, the state-owned gas company, will start receiving shipments in April. The five-year deal includes 12 LNG cargoes per year, ensuring a stable fuel source.

GAIL Chairman Sandeep Kumar Gupta confirmed that LNG deliveries will begin next month. This agreement, signed in December 2024, helps India meet its rising gas demand. The country is increasing LNG imports to support its fast-growing economy. The key phrase “India secures LNG supply” highlights this crucial step.

In addition to this deal, GAIL has signed long-term contracts with other global suppliers. The company agreed to buy 1 million tonnes of LNG per year from Vitol Asia for 10 years. Another deal with ADNOC Gas from the UAE ensures 0.5 million tonnes annually for a decade. Both agreements will start in 2026, helping India secure LNG supply for the future.

Other energy companies in India are also making strategic moves. Indian Oil Corporation (IOC) has signed LNG deals with Abu Dhabi National Oil Company and TotalEnergies. These agreements will provide a steady gas supply to meet India’s increasing energy needs.

GAIL is expanding its LNG portfolio to strengthen the country’s energy security. The company currently handles 14 million tonnes of LNG per year. By 2030, it plans to add another 7-8 million tonnes through new agreements. India secures LNG supply by signing long-term contracts with reliable suppliers worldwide.

GAIL operates an extensive natural gas pipeline network spanning 16,000 km. It dominates the gas transmission market with a 70% share and controls over 50% of gas trading. This infrastructure ensures smooth gas distribution across the country.

Industry experts believe the Qatar Energy deal follows a pricing formula linked to the Henry Hub index. The agreement includes a premium, making it slightly more expensive than GAIL’s contracts with US-based suppliers. Despite this, India secures LNG supply to support its economic growth and energy transition.

As demand for natural gas increases, India continues to secure reliable energy sources. The country is moving towards cleaner fuel options to reduce its dependence on coal. GAIL’s strategic deals ensure stable energy for industries and households.