May 17, 2023 14:04 GMT
India Looking For Long Term LNG Deals to Reduce Exposure to Spot Prices
LNG buyers in India are looking for long term gas supply deals to reduce the impact of spot price volatility and to support the government’s plan to boost the natural gas use.
- Petronet, GAIL India, and Indian Oil Corp. are in talks with LNG suppliers in the US, Qatar & the UAE for long-term 20-year deals according to Bloomberg. India hasn’t signed a long-term deal since 2021 but has instead had to rely on the volatile spot market for supplies.
- Little additional LNG supply is available before 2027 but long term contracts are seen as a way to secure supplies and avoid price volatility.
- India has plans to double the share of gas imports in their energy mix by the end of decade to help reduced pollution.
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