Qatar negotiates 5 mn tonnes a year LNG contract with India

Qatar is negotiating to supply four to five million tonnes per annum of liquefied natural gas (LNG) to India, the emirates deputy Prime Minister, Abdulla Bin Hamad Al-Attiyah, said today.

The additional LNG would be for the Tamil Nadu market through a LNG receiving terminal being built near Chennai.

Addressing the Singapore International Energy Week, Al-Attiyah said the LNG would be diverted from its existing long-term LNG export contracts with the United States buyers, as there is a provision for the two sides to divert excess capacity for better prices.

Al-Attiyah, who is also the Energy and Industry Minister of Qatar, did not touch on the likely price but market sources said Qatar would be looking for a spot price of $9 per million British Thermal Unit.

Qatar has an earlier contract to supply 7.5 million tonnes a year of LNG to India through Dahej LNG receiving terminal.

Al-Attiyah also said negotiations were underway to supply some 7 million tonnes a year of additional LNG to China, with which the emirates currently has 5 million tonnes a year LNG export contract.

Al-Attiyah impressed on the importance of China and India as the growing LNG markets, saying that the LNG would be the best competitive energy in the coming decades.