InvestorQ : Why has Petronet put off plans to import LNG gas into India?
Tisha Malhotra made post

Why has Petronet put off plans to import LNG gas into India?

Aashna Tripathi answered.
2 months ago

Petronet LNG, India's leading gas importer, has put off plans for the time being regarding a 1 million tonnes per annum (MTPA) liquefied natural gas (LNG) import deal. It may be recollected that the price of liquefied natural gas, which is dependent on the price of crude and gas, has gone up sharply in the last few months. This was on the back of a sharp spike in global prices and the ongoing problems in Russia and Ukraine. The war situation has already created a major problem of supply and that is pushing up prices.

Petronet is currently in talks with the Qatar authorities for an extension of its 7.5 million tonnes per annum (MTPA) long-term LNG deal. Petronet LNG has been looking for a 1 MTPA deal for catering to the needs of small industrial users. However, Petronet does expects the LNG prices to ease in the next year. It anticipates that by the middle of next year, either the war between Russia and Ukraine should have abated completely or global pressures of economics would have forced a cessation of hostilities.