India Seeks 3 MTPA extra LNG from Qatar.

India is seeking an extra three million tonnes of liquefied natural gas per year from Qatar for its Dahej plant and Dabhol project under long term contracts.

An industry source said that Qatar, the world's top LNG exporter, currently supplies 7.5 million tonnes of LNG a year to India under a long term contract. We want supplies to begin from 2013 in long-term deals of 20-25 years. Spot and short term contracts we can manage.

The Dahej plant, operated by state owned by Petronet LNG has capacity for 10 million tonnes per year and this should rise to 15 million tonnes per year by end 2015. The Dabhol LNG terminal should be commissioned by March and will have capacity of 5 million tonnes per year. It will be operated by a venture of state owned companies GAIL India and NTPC a power producer.

According to BP's Energy Outlook 2030, India's daily gas consumption in 2010 was estimated at 6.1 billion cubic feet and is expected to exceed 15 billion cubic feet in 2030.

LNG currently accounts for a tiny amount of India's energy needs, most of which are met by coal with oil covering about a quarter of demand making the country Asia's third largest oil importer. Its LNG import capacity should reach 47.5 million tonnes a year in 2015 to 2016 from 13.5 million tonnes a year currently as it seeks to diversify its import needs.

Mr S Jaipal Reddy south Asian country's oil minister said that India had asked Qatar for extra LNG supplies but did not specify quantities. We did seek more supplies of both gas and oil. Discussions are going on. So far, they have been very favorable on cost.

An Indian government statement issued after the meeting said that Qatar offered to supply liquefied petroleum gas and oil condensate to India. India wants to secure long term LNG deals to help cushion against global price volatility and to secure energy supply as it relies on imports for over 80% of oil needs.

Gas accounts for about 10% of India's primary energy basket versus the world average of 24%. Industry executives have warned skyrocketing prices of LNG at above USD 16 per million British thermal units could soon cut into demand growth and delay import infrastructure projects in India and other Asian countries.

Source : steelguru.com