Petronet in talks with Qatar for LNG deal renewal amid turbulent markets

Petronet LNG has begun talks with Qatar to renew a multi-year gas deal despite market “turbulence”, making new long-term contracts difficult as sanctions on Russian fuel have squeezed an already tightly supplied market. India’s top gas importer has till end-2023 to renew its long-term liquefied natural gas (LNG) deal with Qatar Gas to beyond 2028, its head of finance Vinod Kumar Mishra told an analyst call after the Petronet announced quarterly earnings.

He said it was not a “perfect environment” to initiate new long-term deals as market was tight and European companies were aggressively scouting for contracts to cut dependence on Russia after Moscow’s invasion of Ukraine.

Qatar is already in talks with Germany for long-term gas supplies, helping Europe’s biggest economy cut dependence on Russian energy sources.