In the face of rapid rise in demand, Indian oil and gas companies aim to secure natural gas supply, three long-term liquefied natural gas (LNG) worth billions of dollars at the national flagship energy event India Energy Week ) has been settled for import contracts. The deal includes a long-term contract with Abu Dhabi National Petroleum Company (ADNOC) by public sector refiners Indian Oil Corporation (IOC) and Bharat Petroleum Corporation (BPCL), as well as Gujarat Petroleum Corporation (GSPC) with major overall regers in France. ) transactions included.
India’s largest refinery and fuel retailer, IOC has signed a “$7-9 billion contract” with ADNOC’s ARM ADNOC gas, importing 1.2 million tonnes of LNG per year for 14 years starting in 2026 I did. gas.
According to information provided by India’s Ministry of Oil, BPCL will purchase 2.4 million tonnes of LNG from ADNOC over five years starting in April 2025. The agreement could be extended for another five years, the ministry said of the transaction. Totalenergies has signed a 10-year contract to sell 400,000 tonnes of LNG per year to GPSC from 2026, the French energy giant said without providing financial details for the contract.
According to Petroleum Minister Hardeep Singh Puri, all transactions were signed at attractive prices. The Minister said these contracts are “critical steps” that contribute to India’s goal of increasing the share of natural gas in the primary energy mix to 15% by 2030, slightly above the current six percent. I added.
Over the past few years, Indian oil and gas companies have led to ink additional LNG import contracts with global suppliers and have continued to market for longer term supply contracts. According to Puri, the global supplier is keen to sell LNG to India. The country’s natural gas demand is expected to see a major jump by the end of the decade, set to lead to a surge in LNG imports. India has already relied on imports to meet about half of its natural gas demand.
India is already one of the world’s top LNG importers and already has long-term LNG import contracts with suppliers in the US, Australia and the United Arab Emirates. Given the limited domestic production of natural gas, the increase in gas consumption is expected to be driven by an increase in LNG imports. Over the years, India has expanded its ability to import and readjustify LNG to support higher imports of fuel.
India’s gas consumption rose nearly 60% to 100 billion cubic meters (BCM) in 2023, according to the latest estimates by the Paris-based International Energy Agency (IEA), but LNG imports are It has been more than doubled since 2023. 65 BCM from 2030 due to stable demand growth and much slower growth in domestic production.
