Petronet LNG expects Qatar supplies to resume post-crisis, despite disruptions, while expanding infrastructure to strengthen India’s long-term gas security.
India’s leading liquefied natural gas importer, Petronet LNG, remains optimistic that it will resume receiving its full contracted LNG volumes from Qatar once geopolitical tensions in the Middle East subside. Speaking on Monday, the company’s Chief Executive Officer, A. K. Singh, expressed confidence that the disruption in supplies is temporary and that normal deliveries will be restored after the regional situation stabilizes.
Qatar, which stands as India’s largest LNG supplier, has a long-term agreement in place to deliver 7.5 million metric tons of LNG annually to Petronet. This volume typically translates into approximately nine to ten cargo shipments each month. However, the supply chain faced a significant setback in March when the Strait of Hormuz—a critical maritime route for global energy trade—was shut down due to escalating geopolitical tensions. The situation worsened when Iran carried out attacks on two of Qatar’s fourteen LNG production trains, prompting Qatar to invoke force majeure on certain deliveries.
As a result of the damage, Qatar has indicated that approximately 12.8 million tons per year of LNG production capacity could remain offline for an extended period ranging from three to five years. This has raised concerns among importing nations, including India, regarding supply security and pricing volatility. Singh clarified that Petronet has not been receiving cargoes sourced from the affected LNG trains, further confirming the direct impact of the disruption on contracted shipments.
Despite these challenges, Singh emphasized that Petronet has not been formally informed of any long-term reduction in contracted supply volumes. He noted that while Qatar has declared force majeure for deliveries scheduled in May, the company expects that these are short-term adjustments rather than a permanent curtailment. Singh reiterated that Petronet is hopeful its supply commitments will remain intact and that deliveries will normalize once the situation improves.
In parallel with managing supply uncertainties, Petronet is actively working to strengthen its infrastructure and enhance storage capabilities. The company is in the process of constructing three new LNG storage tanks—two at an upcoming import terminal in eastern India and one at its existing Kochi terminal in the southern part of the country. These additions are aimed at improving storage flexibility and ensuring better supply management during periods of disruption.
Furthermore, Petronet is exploring opportunities to expand its storage capacity near its flagship Dahej terminal in Gujarat, which currently has a regasification capacity of 22.5 million tons per year. The company is scouting for suitable land to build four additional LNG storage tanks in the vicinity. This planned expansion reflects Petronet’s strategic focus on bolstering its infrastructure to handle future demand growth while mitigating risks associated with supply interruptions.
Overall, while recent geopolitical developments have temporarily disrupted LNG flows, Petronet remains confident in the resilience of its long-term supply agreements and is taking proactive steps to strengthen its operational capabilities.
