India's largest liquefied natural gas (LNG) importer, Petronet LNG, is negotiating with Qatar to recover at least 90 pending cargoes, including shipments delayed by the ongoing West Asia conflict, as disruptions around the Strait of Hormuz continue to affect energy supplies.
Petronet Managing Director and Chief Executive Officer A K Singh said the company was seeking early delivery of the outstanding cargoes once conditions in the region normalised. The discussions come as India looks to secure reliable natural gas supplies to meet growing domestic demand.
Of the pending shipments, around 75 to 80 cargoes have been delayed because of the regional conflict, while another 15 to 16 cargoes remain outstanding from 2015-16 following earlier pricing disputes.
Under its long-term agreement, Qatar is required to supply Petronet with 7.5 million metric tonnes of LNG annually, equivalent to approximately nine to 10 cargoes every month. However, continuing disruptions to production and shipping have affected deliveries under the contract.
๐ค๐ฎ๐๐ฎ๐ฟ ๐ฒ๐ ๐๐ฒ๐ป๐ฑ๐ ๐ณ๐ผ๐ฟ๐ฐ๐ฒ ๐บ๐ฎ๐ท๐ฒ๐๐ฟ๐ฒ
QatarEnergy has extended force majeure on LNG supplies until the end of 2026, prolonging uncertainty for Indian importers dependent on shipments from the Gulf nation.
Force majeure is a contractual provision that allows suppliers or buyers to suspend certain obligations when extraordinary circumstances prevent them from fulfilling an agreement.
The disruption follows the conflict in West Asia, which has affected energy infrastructure and shipping through the strategically important Strait of Hormuz.
Under the existing supply arrangement, Petronet can receive delayed cargoes until April 2029. However, the company is seeking to recover the shipments earlier to address domestic requirements.
The original agreement was scheduled to expire in April 2028 but has since been renewed for another 20 years, extending the supply relationship until 2048.
๐๐ฎ๐ต๐ฒ๐ท ๐๐ฒ๐ฟ๐บ๐ถ๐ป๐ฎ๐น ๐ฐ๐ฎ๐ฝ๐ฎ๐ฐ๐ถ๐๐ ๐ฒ๐ ๐ฝ๐ฎ๐ป๐ฑ๐ฒ๐ฑ
Petronet has increased the annual handling capacity of its Dahej LNG terminal in Gujarat from 17.5 million tonnes to 22.5 million tonnes, strengthening its ability to receive and process larger volumes of imported gas.
Singh said the expanded facility could accommodate additional LNG supplies during 2028-29, when the company expects greater volumes under its contractual arrangements.
However, a substantial portion of the terminal's capacity has already been booked by state-owned oil and gas companies, which hold LNG import agreements covering approximately 10 to 12 million tonnes annually.
Some of these companies have also experienced delays in shipments from Middle Eastern producers because of the regional conflict.
The additional capacity at Dahej is expected to provide greater flexibility in handling future imports, although actual deliveries will depend on the restoration of supply chains and shipping routes.
๐๐ป๐ฑ๐ถ๐ฎ ๐ฒ๐ ๐ฝ๐น๐ผ๐ฟ๐ฒ๐ ๐ฑ๐ถ๐๐ฒ๐ฟ๐๐ถ๐ณ๐ถ๐ฒ๐ฑ ๐ด๐ฎ๐ ๐๐๐ฝ๐ฝ๐น๐ถ๐ฒ๐
The prolonged disruption has prompted Indian energy companies to reassess their dependence on LNG shipments passing through the Strait of Hormuz.
Singh said purchasing decisions must take into account not only the price of natural gas but also supply security, reliability and the availability of shipping routes.
The conflict has demonstrated the risks associated with relying heavily on particular suppliers and maritime corridors, particularly when geopolitical developments interrupt production or transportation.
India has consequently been examining opportunities to diversify its LNG import sources to reduce exposure to disruptions in West Asia.
The country aims to increase natural gas's share in its energy mix to 15 per cent by 2030, making reliable import arrangements increasingly important for industries, fertiliser manufacturers and city gas distribution networks.
๐๐ป๐ฒ๐ฟ๐ด๐ ๐๐ต๐ถ๐ฝ๐ฝ๐ถ๐ป๐ด ๐ฐ๐ผ๐๐๐ ๐ฟ๐ถ๐๐ฒ
The disruption around the Strait of Hormuz has also affected crude oil shipments, increasing transportation expenses for Indian refiners.
Shipping costs for crude imports have reportedly risen to between $12 and $20 per barrel, compared with approximately $8 to $10 earlier, depending on the route and prevailing conditions.
The increase has added pressure on refiners already facing volatility in international oil prices and physical crude premiums.
Physical crude cargoes have also been trading at substantial premiums to Brent futures, further complicating procurement decisions.
For Petronet, the immediate priority remains securing the outstanding LNG shipments from Qatar while maintaining flexibility in future purchases.
The negotiations highlight the wider challenge facing India's energy sector as it seeks to balance rising natural gas demand with supply security, transportation costs and geopolitical risks.