Petronet to Reduce Dependency on Qatar for LNG Supplies

India’s Petronet LNG is looking to reduce its dependency on Qatar for supply of LNG, reports Daily News & Analysis (DNA) newspaper.

The company currently sources 75% of its liquefied natural gas (LNG) supply from Qatar.

It is negotiating long-term LNG purchase contract with Angola, Mozambique, Russia and Indonesia, Ashok Kumar Balyan, managing director and CEO said.

Petronet is looking at securing contracts for 2.5-3 million tonne (mt) of LNG through these deals, DNA adds.

According to the newspaper, Petronet has been criticised for its expensive LNG import deal from Australia's Gorgon project. The 20-year deal signed for 1.44 mt LNG at a price of $14.5/mmBtu could land up at the Kochi terminal for around $15-$16/mmBtu and may ultimately cost the consumer $18/mmBtu.

Balyan, however, said the deal was still cheaper in comparison with spot LNG purchases, reports DNA.

“We have bought LNG in last three months at a price of $18.5-$19 from different places for the Indian market," he said.

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