BPCL’s Joint Venture, PLL, Renews 20-Year Partnership with Qatar Energy, Secures 7.5 MMTPA LNG for India’s Energy Security

A joint venture of Bharat Petroleum Corporation Limited (“BPCL”), Petronet LNG Limited (“PLL”), a LNG terminal-owning company, has concluded and executed a Long-term LNG Sale & Purchase Agreement (“LNG SPA”) with Qatar Energy for the purchase of approximately 7.5 MMTPA Liquified Natural Gas (“LNG”) on a long-term basis today. PLL is a Joint Venture Company with equity participation from four Oil & Gas Maharatna Public Sector undertakings — Gas Authority of India Limited (“GAIL”), Oil and Natural Gas Corporation (“ONGC”), Indian Oil Corporation Limited (“IOCL”), and BPCL, each holding an equity share of 12.50%, collectively totaling 50%.

LNG SPA is a renewal of the existing agreement signed on 31st July 1999, which was set to expire in April 2028. The new agreement entails deliveries commencing from May 2028 for a duration of 20 years with supplies on a delivered basis.

In line with the earlier agreement from 1999, the volumes under the new LNG SPA will be off taken by GAIL (60%), IOCL(30%), and BPCL(10%) primarily from PLL’s Dahej Terminal on a substantially back-to-back basis.

The existing long-term agreement between PLL & Qatar Energy today accounts for around 35% of India’s LNG imports as of 6th February, 2024. We hope that the renewal of this agreement is a step in achieving vision of Hon’ble Prime Minister of India to increase share of natural gas in India’s energy basket to 15% by year 2030. This agreement aims to provide energy security and ensure stable & reliable supply of clean energy and help India in its stride towards greater economic development.