Amid a tumultuous global energy market, India renewed a liquified natural gas (LNG) contract with Qatar for an annual 7.5 million tons of chilled fuel set to begin in 2028 and end in 2048, making it one of the most significant contracts of its kind, the Wall Street Journal reports.
The agreement highlights India’s transformation into a shrewd major global energy buyer, adept at taking advantage of geopolitical and economic disruptions-fuelled price downturns to secure favorable energy deals for itself.
This deal with QatarEenery, Qatar’s state-owned energy company, is an example of India’s strategy to use periods of crises to support its energy needs to secure long-term energy deals during times of price decline.
India, with its modest domestic oil and gas reserves, is facing environmental challenges, most notable is air pollution. These long-term commitments to supply contracts underscore India’s deliberate approach to energy diplomacy to offset future instability during price swings in the energy sector, and the global pressure to transition from fossil fuels to renewable energy sources.
As India gears up to position itself as an alternative to China, the country has begun increasing its natural gas share with plans to go from 5% in 2023 to 15% in 2030. India is currently the world’s second-largest LNG buyer after China, with the former’s demand potentially exceeding 90 million metric tons annually by 2050.
India’s challenge lies in finding the balance between affordability, sustainability, and energy security.
