Qatar's LNG Exports to India, Pakistan Jump Close to 50% in H1
Qatar’s LNG exports to India and Pakistan in the first half of this year jumped almost 50 percent on year, according to Platts.
Exports to India and Pakistan (South Asia) were 7,138,785 mt during January-June, up 46% in comparison with the first six months of last year. Rise in deliveries were split between India and Pakistan at 6,045,886 mt and 1,092,899 mt respectively for the first six months of 2016, Platts reported.
As global LNG price remain depressed, demand in the two South Asian nations has seen significant uptick.
India’s cost of importing LNG has dropped sharply this year after New Delhi signed a revised long term contract with Doha. Qatar is largest supplier of LNG to India. Given the backdrop of low global LNG prices, Petronet LNG insisted on renegotiating its long term contract with RasGas. In December, the two parties signed a revised deal. The revised formula bases the price on a three-month average figure of Brent crude oil, replacing a five-year average of a basket of crude imported by Japan, with a rider that Petronet buys an additional 1 mt of LNG annually. Qatar also waived off a $1.5 billion penalty against India for lifting less gas than agreed.
Cost of LNG that India imports from Qatar has slipped below $5 per mmBtu post signing of revised long-term deal.
Earlier this year, Pakistan signed its first long term deal with Qatar. As per the deal signed in February, Qatargas will supply fuel to Pakistan State Oil (PSO) from 2016-2031. The price for each LNG cargo in a particular month has been agreed at 13.37 percent of Brent where Brent value is average of the preceding three months. Qatargas will supply 3.75 mt per annum (MTPA) of LNG to PSO. The 15-year long term deal is the largest deal of first quarter 2016, a report by GlobalData suggests. The deal has been estimated to be worth $16 billion.
Last month, Pakistani private sector company Global Energy Infrastructure Limited also inked a long term deal with Qatargas. As per the sale-purchase deal signed between the parties, Qatargas will supply 1.3 million tonne per annum of LNG to Pakistan for 20 years, with provisions allowing the volume to increase to 2.3 million tonne per annum.