QatarEnergy inks 17-year LNG supply agreement with Gujarat's GSPC

The latest agreement follows another long-term LNG supply deal between QatarEnergy and GSPC, inked in 2019

QatarEnergy on Wednesday announced that it has signed a 17-year sales and purchase agreement (SPA) with Gujarat State Petroleum Corporation (GSPC) to supply up to 1 million tonnes (MT) of liquefied natural gas (LNG) every year to India. According to the agreement, LNG will be delivered by ship to various terminals in India starting in 2026.

Strengthening energy security

Commenting on the deal, Minister of State for Energy Affairs and President & CEO of QatarEnergy Saad Sherida Al-Kaabi said the company is happy to extend its partnership with GSPC. “We are delighted to extend our valued partnership with GSPC through this long-term SPA, which highlights our continued commitment to supporting India’s growing energy needs,” Al-Kaabi said.

 

 

He added that this deal not only strengthens the close relationship between QatarEnergy and GSPC but also supports India’s plan to improve its energy security and move toward cleaner energy sources.

 

“This collaboration not only reinforces the enduring ties between our two companies but also contributes to India’s vision of enhancing its energy security and transitioning towards a cleaner energy mix. QatarEnergy remains committed to delivering safe and reliable LNG supplies to support India in its endeavours,” he said.

QatarEnergy-GSPC 2019 deal

The latest agreement follows another long-term LNG supply deal between QatarEnergy and GSPC, which was inked in 2019. "The deal underscores the strong relationship and mutual trust between the two companies, as well as their shared commitment to advancing a sustainable energy future," the company said in a statement.

Increasing LNG import capacity

The deal also comes as India ramps up its LNG import capacity by 27 per cent by 2030, with plans to add two new import terminals.  The country currently operates eight LNG terminals with a combined capacity of 52.7 MT annually.

 

Amid an increased push to achieve net-zero emissions by 2070, the government plans to expand the number of LNG dispensing stations for vehicles to 1,000 in the coming years.

 

Oil Minister Hardeep Singh Puri, last month, said the number of LNG dispensing stations will rise to 49 by December, up from the current 13.