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India retains its bet on LNG from Qatar: does Russia have a chance?

Asia (, - Qatar will remain the largest gas supplier to India. Doha and Delhi renewed their record contract. Before the nationalization of the German enterprise, Gazprom also supplied LNG to India. Experts believe that the country is becoming an extremely attractive market.

Qatar Energy announced the signing of a new contract with Petronet LNG to supply 7.5 million tons of LNG (just over 10 billion cubic meters) per year to India. The agreement will take effect from May 2028 and will last 20 years.

The new contract will, in fact, be a continuation of the cooperation between the two companies, which began back in 1999. In 2015, the parties signed the current agreement and supplies amount to 8.5 million tons (11.7 billion cubic meters) per year.

According to the Indian The Economic Times, all purchases will cost $78 billion, and savings at current market prices will amount to $6 billion.

Until 2022, Gazprom also supplied gas to India. Its subsidiary Gazprom Marketing and Trading Singapore, which was part of Gazprom Germania, signed a contract with the Indian Gail for 2.5 million tons, which were supplied from the Yamal LNG project. In April 2022, however, the German government transferred Gazprom Germania into trust for the Federal Network Agency. After this, the enterprise, renamed SEFE and, in fact, nationalized, stopped supplies, primarily meeting the needs of consumers in the EU. Shipments to India resumed last year, including from SEFE's Cameroonian volumes, but on November 30 Gail took SEFE to London arbitration. The claim is for up to $1.87 billion and alternative compensation, including non-monetary damages.

Indian Prime Minister Narendra Modi said at the Energy Week in Goa that the country plans to increase the share of natural gas in the country's energy mix from the current 6% to 15% by 2030. In other words, double imports.

Deputy Director of the National Energy Security Fund (NESF) Alexey Grivach believes that India will become an attractive LNG market under sanctions if the advances issued to India as the next locomotive of growth in demand for energy in general and gas in particular after China are justified.

“Purely logistically, the Russian Arctic is not the most convenient production center for India, to put it mildly. But the story with oil, and contracts for the supply of LNG, show that logistics can be built with mutual interest,” noted the deputy director of the FNEB.

India retains its bet on LNG from Qatar: does Russia have a chance?