Black swan events in global markets upset India's long-term LNG story

With prices soaring and competition for the fuel rising, India's inability to negotiate term contracts with global suppliers puts Rs 2 trillion of investment at risk

Last year, a varied bunch of Chinese energy companies concluded a record 23 long-term liquefied natural gas (LNG) supply contracts for an average duration of 15 years. The US, Russia and Qatar accounted for three fourths of the 27 million tonnes a year of fuel contracted by Beijing to hedge volatile prices and enable assured supplies, Washington-based Middle East Institute said.

The volumes exceed India’s total LNG import purchases for 2021. Despite making a later entry than India into the LNG club, China became the world’s biggest LNG importer last year, unseating Japan, helped by smart purchasing, extensive transport