India asks Qatar to deliver cargoes not taken in 2015

A global energy shortage has promoted India to ask its largest gas supplier, Qatar, to deliver some 50 shiploads or cargoes of LNG it deemed too expensive six years ago.

Petronet LNG Ltd, the nation's biggest liquefied natural gas importer (LNG), has asked Qatargas to deliver in 2022 the 50 cargoes that were deferred in 2015, its chief executive officer Akshay Kumar Singh said on the sidelines of the India Energy Forum by CERAWeek here.

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These will be on top of the 7.5 million tonnes a year or 115 cargoes of LNG it imports on a long-term contract.

India in 2015 had not taken delivery of the cargoes as it renegotiated the pricing of the long-term supply contract. Qatar had then agreed to revise the pricing formula subject to India buying an additional 1 million tonnes per annum of LNG.

As regards the cargoes that were not taken, it was decided that India can see the cargoes anytime during the remainder of the contract that ends in 2028. In case Qatar is unable to meet the request, the deferred cargoes can be delivered in 2029.

"We have requested Qatar to give us the pending 50 cargoes next year," Singh said. "We require the cargoes now."

Spot LNG prices in Asia rose to a record USD 56.33 per million British thermal units on October 6, valuing a standard cargo at about USD 190 million.

Petronet pays about USD 11 per mmBtu under its oil-linked contract with Qatar.

Last year, Petronet had sought 3 cargoes additional to the annual contracted volume, of which Qatar delivered two, an official aware of the matter said.