The world’s largest deal for liquefied natural gas (LNG) has been signed between India and Qatar. With this, India will continue to get uninterrupted LNG for the next 20 years. Petronet’s renewal of 7.5 million tonnes per annum liquefied natural gas (LNG) purchase contract from Qatar for 20 years from 2029 is possibly the largest deal for the purchase of this fuel in the world. This will help India achieve clean energy goals. The officials have said this. Top Petronet officials said the original 25-year agreement was signed in 1999 and supplies began in 2004.
Since then, Qatar has never defaulted on a single consignment nor has it imposed any penalty under the ‘buy or pay’ provision for the Indian company not taking supplies when prices were very high. The supplies under the extended contract will commence after Petronet takes delivery of 52 cargoes which it had failed to take in 2015-16 due to price surge. Although the contract volume has never changed, the price has changed four times. This also includes the latest case, in which there have been fresh negotiations on contract extension. Apart from this, the composition of the gas that was promised to be supplied has also changed.
Big revolution will come in these areas
RasGas (now QatarEnergy) originally held the contract to supply ‘rich’ gas containing ethane and propane elements, which is used at petrochemical complexes. It has supplied 5 million tonnes (MT) of LNG annually which includes methane (used for power generation, fertiliser, production of CNG or cooking fuel) as well as ethane and propane containing gas. The price is lower under the revised contract signed last week. In this, QatarEnergy will supply ‘Lean’ or gas without ethane and propane. However, Petronet officials said Qatar will continue to supply ‘rich’ gas until they have the facilities to use ethane and propane. “We will continue to receive ‘rich’ LNG,” a top company official said.
So many crores of rupees were spent in Gujarat
Public sector Oil and Natural Gas Corporation (ONGC) has spent Rs 30,000 crore on building a petrochemical complex at Dahej in Gujarat to use ethane and propane from LNG coming from Qatar. With this, such products can be made which are used in plastic and detergent manufacturing. According to ‘Wood Mackenzie’, the sale and purchase agreement between QatarEnergy and Petronet extends for 20 years ‘covering’ volumes of about 150 million tonnes. This is a bigger contract than the two 108 million tonne agreements QatarEnergy signed with China National Petroleum Corporation and Sinopec in the last two years. ‘(Language)
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