Petronet LNG Negotiates Qatar Contract to Diversify Gas Sources
Petronet LNG is negotiating with Qatar to recover delayed cargoes and integrate U.S. gas supplies to mitigate Middle East shipping disruptions.
India's largest gas importer, Petronet LNG, is negotiating with Qatar to recover 75-80 liquefied natural gas (LNG) cargoes delayed by the Iran war and a blockade of the Strait of Hormuz. Between March and October 2026, the company received only six expected cargoes after QatarEnergy declared force majeure on supplies through December 2026. While contractual terms allow recovery until April 2029, CEO Akshay Kumar Singh is seeking earlier delivery to meet rising domestic demand.
To hedge against future geopolitical risks, Petronet is working to diversify its supply chain under a renewed long-term agreement with QatarEnergy that extends from 2028 to 2048. The company is negotiating to include LNG sourced from the United States within this 7.5 million metric ton annual contract. To facilitate this, QatarEnergy has secured its own 20-year supply agreements with U.S.-based Woodside Energy and Cheniere Energy.
In the interim, India has increased gas purchases from Australia, Nigeria, Angola, and Oman. Petronet has also suspended time charter agreements for three LNG tankers. Despite these disruptions, the company reported a 54 percent year-on-year increase in consolidated net profit for the second quarter of FY27.
