Qatar's RasGas, India's Petronet ink natural gas sale deal

Qatar's RasGas Company Limited and India's Petronet LNG Limited recently signed a sales and purchase agreement (SPA) that will move 1 million tons per year (MTA) of liquid natural gas from Qatar to India, beginning this year.

The supply will feed Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd, GAIL (India) Ltd, and Gujarat State Petroleum Corporation.

"These positive developments, including the new SPA, demonstrate the strength of our long-term relationship with Petronet and commitment to growing sales into India to meet its expanding clean energy needs," RasGas CEO Hamad Mubarak Al-Muhannadi said.

In addition to the new 1 MTA deal, the two companies also revised a 7.5 MTA pact they made in 1999. The new language firms up Petronet's commitment to buying the full 7.5 MTA, regardless of what they purchased in 2015.

“These developments highlight both parties confidence in the Indian market and our commitment to LNG as a cleaner, more efficient source of energy,” Petronet CEO Prabhat Singh said.

RasGas has been supplying India with liquid natural gas since 2004. In total, the company supplies approximately 37 million tons of liquid natural gas to Asia, Europe, North America and South America each year.