Qatar to sell India 4 million tonnes more gas, but price remains an issue
22 Mar 2010
Qatar has agreed to supply an additional 4 million metric tons of liquefied natural gas a year to India by 2014 to meet its rising energy consumption, petroleum secretary S Sundareshan told newspersons in New Delhi on Saturday. Prices however have not been finalised.
The fuel may be supplied to Petronet LNG Ltd's terminal at Kochi and a terminal being built by Ratnagiri Gas & Power Pvt Ltd at Dabhol, Sundareshan said. Ratnagiri is controlled by GAIL India Ltd and the National Thermal Power Corp Ltd.
Qatar, the world's largest LNG exporter, will begin with one million tonnes of supplies in 2011 and ramp it up to 4 million tonnes by 2014. "These will be 15-20 year contracts," Qatar's energy minister Abdullah al-Attiyah told reporters after an hour-long meeting with petroleum minister Murli Deora.
"India is on top of my agenda. We are always committed to meeting India's needs," he said.
India currently imports 7.5 million tons of LNG every year from Qatar's RasGas under a long-term deal. The additional fuel would be imported at Petronet LNG Ltd's under-construction Kochi LNG terminal and almost ready Dabhol receiving facility on the western coast.
Qatar is seeking to sell its surplus LNG elsewhere after its principal importers, the US and Europe, cut imports. ''We are looking to divert conditional cargoes from the US and Europe to India if we get better deals,'' al-Attiyah said.