Petronet Anticipates Restoration of Qatar LNG Supplies Post-Crisis

India's Petronet LNG Awaits Stabilization in Middle East for Full Qatar LNG Supplies

India's top gas importer, Petronet LNG, is expecting to receive its full contracted amount of liquefied natural gas (LNG) from Qatar once the geopolitical situation in the Middle East stabilizes. According to A. K. Singh, the company's chief executive, Qatar, India's largest LNG supplier, has a contract to supply 7.5 million metric tons per year of LNG to Petronet, equivalent to 9-10 cargoes per month.

However, supplies were halted in March following the closure of the Strait of Hormuz, while Iran struck two of Qatar's 14 LNG production trains, forcing it to declare force majeure. This development has resulted in Qatar saying that repairs will sideline 12.8 million tons per year of LNG for three to five years. Notably, Petronet has not been receiving cargoes from the trains that were damaged in attacks.

Given the ongoing situation, Petronet is taking proactive steps to mitigate any potential disruptions. The company is building three new LNG storage tanks - two at a new import terminal in eastern India and one at Kochi terminal in the south - aiming to enhance its storage capacity. Additionally, Petronet is scouting for land to build four additional tanks near its 22.5 million ton per year Dahej terminal in western Gujarat state.

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The company's efforts to increase its storage capacity are expected to provide a cushion against potential supply disruptions. For now, Petronet is holding out hope that its supplies from Qatar will not be cut, and the company is closely monitoring the situation to ensure a smooth supply of LNG to meet India's growing energy demands.