The Indian company, Petronet, has extended its agreement with Qatar to supply gas.

Three informed sources said:

“Petronet, the Indian gas company, will sign an agreement with Qatar today, Tuesday, to extend its long-term imports of LNG beyond 2028.”

Under the current deal, which expires in 2028, Petronet imports 7.5 million metric tons of liquefied natural gas annually from Qatar, at a discount of 12.67% compared to Brent crude futures prices, with a fixed fee of 52 cents per million British thermal units.

One source said:

“According to the renewed agreement, the fixed fees for Qatari liquefied natural gas will be abolished.”

The three sources said that it is also expected for Petronet to sign a separate agreement for liquefied natural gas supplies based on delivery.

Reuters reported last month that Qatar Energy Company has signed a long-term agreement for liquefied natural gas (LNG), offering flexible shipments according to destination and lower prices for Indian buyers.

Qatar, the largest supplier of liquefied natural gas in the world, aims to increase its capacity to liquefy to 126 million tons per year by 2027 from 77 million tons per year. Furthermore, Qatar has signed long-term agreements with major European companies such as Shell, Total Energies, and ENI.

India aims to increase its share of natural gas in its energy mix to 15 percent by 2030, up from the current 6.2 percent, as part of its efforts to reduce emissions.