GAIL (India) Ltd is close to finalising a long-term liquefied natural gas (LNG) import deal with Qatar to buy at least 1 million metric tonnes per year, potentially for more than 20 years, three industry and trade sources said.
The deal would be part of GAIL’s plans to lock in new supply contracts by 2030 to diversify its gas imports and hedge against supply disruptions like those seen after Russia’s invasion of Ukraine last year, when LNG prices surged to a record high.
Neither GAIL nor QatarEnergy responded to Reuters requests for comments.
GAIL had to cut gas sales to some local industries last year after supplies under its long-term deal with the German unit of Russia’s Gazprom were hit when it was taken over by Berlin, which diverted volumes to its own market.
Qatar, the world’s top LNG exporter, is looking to sign record volumes of long term sales contracts this year as it expands market share globally at the expense of Russia.
GAIL would be the second local company to sign a deal with Qatar. Petronet is also negotiating an extension to beyond 2028 of its long-term deal, under which Qatar supplies 8.5 million tonnes per year of LNG. Reuters