Petronet LNG and Qatar Energy extend Liquefied Natural Gas (LNG) supply deal for another 20 years beyond 2028 | Current Affairs | Vision IAS

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  • New agreement between India and Qatar, inked during the ongoing India Energy Week 2024 in Goa, is pursuant to extension of an existing long-term contract for LNG supply, signed in 1999 for supplies till 2028.
    • Under new agreement, LNG supply of 7.5 million metric tonnes per annum will be commencing from 2028 till 2048.
    • Indian companies also have term contracts for LNG in Australia and UAE.

 

  • Significance of agreement
    • Promote Gas Based Economy by increasing the share of gas in energy mix from 6% to 15% by 2030.
    • Ensure continued supplies of regasified LNG to major consuming sectors like fertilisers, city gas distribution, refineries, power generation etc.
    • Reduce import bills as Natural gas is cheaper and cleaner fuel than crude oil. Thus, it is a more affordable alternative to imported crude oil.

 

  • LNG is a clear, colourless, non-toxic liquid which forms when natural gas is cooled to a liquid state, at about -260° Fahrenheit (-162Celsius), for shipping and storage.

 

  • Initiatives taken to promote Natural Gas
    • LNG terminals at Dahej, Hazira and Mundra (Gujarat), Dhabol (Maharashtra), Kochi (Kerala) and Ennore (Tamil Nadu).
    • One Nation One Gas Grid Project to increase availability of natural gas across country.
    • Gas4India campaign.

 

Petronet LNG Limited 

  • It is one of the fastest growing world-class Public Limited Company in Indian energy sector
  • It is a joint venture of Oil and Natural Gas Corporation, Indian Oil Corporation Limited, GAIL (India) Limited, and Bharat Petroleum Corporation Limited.
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