Indian liquefied natural gas (LNG) company Petronet expressed hope of extending its long-term agreement with Qatar to import gas at prices lower than those offered by the Gulf state in its recent agreements with China and Bangladesh. Petronet's CEO A.K. Singh stated that "indications suggest that agreements were made based on 12 to 13 percent of Brent crude prices, and LNG contracts are generally priced as a percentage of Brent prices." He expressed hope at a press conference announcing the second-quarter earnings that "we will get better deals than others," adding that "Petronet is having serious discussions with Qatar, the world's largest LNG exporter, to extend its long-term agreement beyond 2028," and noted that the company has until the end of the year to finalize negotiations for the extension.
Petronet currently purchases 8.5 million metric tons of LNG annually under its agreement with Qatar, priced at about 12.67 percent of Brent crude prices, plus a fixed fee of approximately 50 cents per million British thermal units. Singh had earlier stated that Petronet would seek to obtain up to one million metric tons per year of additional LNG supplies when renewing its long-term agreement with Qatar. Petronet operates two LNG import terminals on the west coast of India, one in Dahej with a capacity of 17.5 million metric tons per year and the other in Kochi with a capacity of five million.
