QatarEnergy and Petronet Enter into 20-Year LNG Sales Agreement

QatarEnergy has recently finalized a substantial 20-year LNG Sale and Purchase Agreement (SPA) with Petronet LNG Ltd, marking a significant milestone in their partnership. Under this agreement, QatarEnergy is slated to supply 7.5 million tons per year (tpy) of LNG to the Republic of India. The contracted LNG volumes from Qatar will be transported ex-ship to terminals across India, utilizing QatarEnergy's extensive LNG fleet, with deliveries commencing from May 2028.

The signing of this momentous SPA was commemorated during a special ceremony held in Goa, India, graced by dignitaries including Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and the President and CEO of QatarEnergy, and Hardeep Singh Puri, the Minister of Petroleum & Natural Gas, and Housing & Urban Affairs in the Republic of India. Also in attendance were key figures such as Pankaj Jain, Secretary of the Ministry of Petroleum & Natural Gas and Chairman of Petronet LNG, Sandeep Kumar Gupta, Chairman and Managing Director of GAIL (India) Ltd, Shrikant Madhav Vaidya, Chairman of Indian Oil Corp., and Krishnakumar Gopalan, Chairman and Managing Director of Bharat Petroleum Corp. Ltd.

To immortalize this significant occasion, a formal document commemorating the signing of the agreement was signed by Akshay Kumar Singh, Managing Director and CEO of Petronet LNG Ltd, and Abdulla Ahmad Al-Hussaini, Executive Vice President for Marketing at QatarEnergy.

This agreement signifies another crucial milestone in the enduring energy partnership between Qatar and India. It is particularly noteworthy as it coincides with the 20th anniversary of the first LNG shipment to India. Saad Sherida Al-Kaabi expressed his sentiments regarding this agreement, stating, "This new agreement, with our valued customers Petronet LNG and its esteemed shareholder companies, will further strengthen the relationship with India and support its vision to increase the contribution of natural gas in its energy mix."

QatarEnergy has been making waves in the LNG industry with its ambitious LNG shipbuilding program, which has been hailed as the largest of its kind in the history of the LNG sector. The program has unfolded in phases, with a total of 60 ships ordered at Korean and Chinese shipyards during the initial phase. In September 2023, QatarEnergy initiated the second phase of its colossal shipbuilding program by placing an order for the construction of 17 LNG carriers with South Korean shipyard HD Hyundai Heavy Industries (HHI). Subsequently, at the onset of 2024, the company secured a contract with Chinese shipbuilder CSSC Hudong Zhonghua shipbuilding for the construction of eight Q-Max ultra-large LNG carriers. These vessels, boasting a carrying capacity of 271,000 cubic meters, will be the largest in the world.

Moreover, QatarEnergy is reportedly behind the latest substantial order for 15 LNG carriers at Samsung Heavy Industries (SHI). Valued at KRW 4.57 trillion ($3.44 billion), this contract represents the largest single deal received by the shipbuilder. Negotiations between the two companies for the shipbuilding program have been ongoing since October the previous year.