Petronet LNG Limited Executes Long-term Contract for Purchase of 7.5 MMTPA LNG with QatarEnergy

· Extension of an existing LNG SPA for LNG supply of around 7.5 MMTPA LNG Sale & Purchase Agreement on FOB basis.

· LNG supplies will be made on delivered (DES) basis commencing from 2028 till 2048.

· The LNG volumes under the new SPA shall also be off taken by GAIL (India) Limited (60%), Indian Oil Corporation Limited (30%) and Bharat Petroleum corporation Limited (10%) after regasification primarily from Dahej Terminal of PLL.

· Supplies of regasified LNG to major consuming sectors like fertilisers, CGD, refineries & petchem, power and other industries.

· Long-term agreement between Petronet LNG & QatarEnergy today accounts for around 35% of India’s LNG imports and is of national importance.

· Increase share of natural gas in India’s primary energy basket to 15% by year 2030.

· The Company had set up Country’s first LNG Receiving and Regasification Terminal and started its operations in year 2004.

· PLL is in the process of constructing 3rd Jetty at Dahej which will have a unique feature of handling ethane and propane besides LNG.

· Petronet is also setting up Petrochemicals project of 750 KTPA of PDH & 500 KTPA of PP plant including propane and ethane handling facility at Dahej, Gujarat.

Press Release/06.02.2024

Petronet LNG Limited (PLL), India's flagship LNG terminal owning company, has successfully concluded and executed a LNG Sale & Purchase Agreement (LNG SPA) for purchase of around 7.5 MMTPA LNG with QatarEnergy on long-term basis today. This is pursuant to extension of an existing LNG SPA for LNG supply of around 7.5 MMTPA LNG Sale & Purchase Agreement on FOB basis, signed on 31st July 1999 for supplies till 2028. Under the new agreement, LNG supplies will be made on delivered (DES) basis commencing from 2028 till 2048.

Similar to earlier agreement of 1999, the LNG volumes under the new SPA shall also be off taken by GAIL (India) Limited (60%), Indian Oil Corporation Limited (30%) and Bharat Petroleum corporation Limited (10%) after regasification primarily from Dahej Terminal of PLL on substantially back to back basis.

This LNG SPA between PLL and QatarEnergy will ensure energy security of the India and assure continued supplies of regasified LNG to major consuming sectors like fertilisers, CGD, refineries & petchem, power and other industries.

Akshay Kumar Singh, MD & CEO, Petronet LNG Limited said “the existing long-term agreement between Petronet LNG & QatarEnergy today accounts for around 35% of India’s LNG imports and is of national importance. Renewal of this agreement is a step towards achieving vision of Hon’ble Prime Minister of India to make India a gas based economy and increase share of natural gas in India’s primary energy basket to 15% by year 2030. This agreement will provide energy security and ensure stable & reliable supply of clean energy and help India in its stride towards greater economic development.”

He further added that the long-term LNG purchase agreement with QatarEnergy will further strengthen the existing relationship between the two Companies.

About Petronet

Petronet LNG Limited is a Joint Venture Company with equity participation from four Oil & Gas Maharatna Public Sector undertakings i.e., GAIL, ONGC, IOCL and BPCL each holding equity of 12.50%, and together totalling to 50%. PLL was incorporated on 2nd April 1998 under the Companies Act, 1956.

The Company had set up Country’s first LNG Receiving and Regasification Terminal and started its operations in year 2004, with an initial nameplate capacity of 5 MMTPA at Dahej, Gujarat. Since then, the capacity of the Dahej terminal has been expanded in phases (10 MMTPA in year 2009, 15 MMTPA in 2016 and 17.5 MMTPA in 2019).

To cater the gas requirement of the Southern India, Petronet LNG Limited commissioned its second LNG receiving, storage and regasification terminal in Kochi in year 2013 with nameplate capacity of 5 MMTPA.

Infrastructure-wise, PLL has 47% share of the country’s existing LNG Regas Capacity and handles around 75% of Country’s LNG imports. PLL’s operations accounts for around 33% of total Natural gas supplies in the Country.

In line with Government of India’s vision, PLL is undertaking a brownfield expansion of regas capacity of Dahej LNG Terminal from 17.5 MMTPA to 22.5 MMTPA. PLL is constructing two additional LNG Storage Tanks at its Dahej LNG Terminal which will be commissioned shortly. PLL is in the process of constructing 3rd Jetty at Dahej which will have a unique feature of handling ethane and propane besides LNG. Further, PLL is also undertaking the activities for setting up an FSRU based LNG terminal with an initial capacity of 4 MMTPA, with a future provision of converting it to land based terminal of 5 MMTPA capacity on the East Coast of India at Gopalpur, Odisha.

Petronet is also setting up Petrochemicals project of 750 KTPA of PDH & 500 KTPA of PP plant including propane and ethane handling facility at Dahej, Gujarat.