Sign In
Learn bits
World Affairs
Mahesh

28/10/23 07:22 AM IST

India,Qatar natural gas

In News
  • In the relationship between nations, trade relations play a significant role. In the case of India and Qatar, the balance of trade is tilted heavily in the latter’s favour — which means imports from Qatar far outweigh India’s exports.
Gas import dependency
  • India’s import dependency in natural gas is around 50%, and given the government’s concerted push to increase natural gas consumption, imports are only likely to rise in the coming years, even if domestic production of natural gas increases.
  • Government-owned Petronet LNG, India’s largest LNG importer, has a long-term contract with Qatar for the import of 8.5 million tonnes per annum (mtpa) of LNG. In addition, Qatari gas has a sizable share in India’s LNG purchases from the spot market.
  • India has set itself an ambitious target to increase the share of natural gas in the primary energy mix to 15% by 2030 from a little more than 6% at present.
  • Natural gas is seen as a significantly cleaner alternative to conventional petroleum fuels like diesel and petrol, and is usually cheaper than crude oil.
  • For India, which has an import dependency of over 85% in crude, gas is both more affordable and a better transition fuel in the energy transition pathway.
Major imports & Exports
  • India’s total imports from Qatar in FY2022-23 were valued at $16.81 billion, of which LNG imports alone were worth $8.32 billion, or 49.5%.
  • India’s other major imports from Qatar are also fossil fuel-linked commodities and products, such as liquefied petroleum gas (LPG), plastics, and other petrochemicals.
  • On the other hand, India’s exports to Qatar were valued at just $1.97 billion in FY2022-23. The major exports include cereals, copper articles, iron and steel articles, vegetables, fruits, spices, and processed food products.
  • India imported a total 19.85 million tonnes of LNG in FY23, of which 10.74 million tonnes, or 54%, came from Qatar.
  • This means that apart from the 8.5 million tonnes of LNG that Qatar supplied as part of the Petronet LNG term contract, nearly 2.25 million tonnes of additional gas was purchased from Qatar on spot basis last year.
Aftermath of war
  • The war has put Qatar, the world’s largest exporter of LNG, in a unique position of strength.
  • According to industry experts, the extreme price volatility of the past couple of years in global LNG markets has established that term contracts, and not spot purchases, are the more viable option to secure supplies at a reasonable and stable price.
  • This has pushed LNG importers all over the world, including India, to scout for long-term contracts with major suppliers, of whom Qatar is the foremost.
  • Doha has announced 27-year LNG supply deals with French, Dutch, and Italian energy majors.
  • Petronet’s term contract runs out in 2028, and negotiations for an extension are currently under way. India is also looking to sign more long-term LNG contracts.
Source- Indian Express

More Related Current Affairs View All

20 Nov

ISRO’s GSAT-N2 communication satellite

'Elon Musk-owned Space X successfully launched the Indian Space Research Organisation (ISRO)'s communication satellite GSAT-N2 from Canaveral Space Force Station in Florida.'

Read More

20 Nov

Artificial rain in New Delhi

'As the national capital’s air quality continued to be in the ‘severe plus’ category for the third consecutive day, Delhi Environment Minister Gopal Rai wrote to

Read More

20 Nov

Chancay port project in Peru

'Chinese President Xi Jinping inaugurated Peru’s Chancay Port  describing it as the starting point for a “new land-sea corridor between China and Latin America&rdq

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps