India’s Petronet LNG seeks a smarter path to US cargoes by talking with Qatar about sourcing part of its volumes from American facilities under the renewed long-term contract that begins in 2028.
The discussions follow supply shocks from the Iran war, which triggered a force majeure declaration and disrupted Gulf shipments.
India’s Petronet aims to diversify origins without walking away from its core partnership with Doha.
The move keeps the commercial relationship intact while building greater flexibility into one of India’s most important LNG deals. Early talks already signal Qatar’s openness to supply a portion of the volumes from its own US-tied sources once the new contract takes effect.
Petronet currently receives 7.5 million tons of LNG each year from Qatar under a contract that expires in April 2028. The company has already renewed the agreement for another 20 years until 2048 on a delivered basis.
QatarEnergy holds its own long-term purchase deals with US producers. These include a 20-year agreement for 3 million tons per year from Woodside facilities starting in 2030 and arrangements with Cheniere for up to 4 million tons per year through 2054 from Sabine Pass and Corpus Christi plants. Those volumes could potentially flow into the Indian contract.
Also Read: Indian Commercial Vehicle Industry 2026: Trends and Opportunity
The Iran war blocked the Strait of Hormuz and led to attacks on Ras Laffan facilities, prompting QatarEnergy to declare force majeure in March. That declaration currently runs through December and exposed India’s heavy dependence on Gulf LNG.
Petronet responded by suspending time-charter agreements for three LNG tankers and buying spot cargoes from the United States, Oman, Nigeria, Angola and Australia. The latest request turns those short-term adjustments into a longer-term structural solution. India’s Petronet wants origin flexibility built into the renewed contract rather than relying solely on emergency spot purchases each time Gulf risks rise.
Petronet has asked Qatar to divert a portion of the contracted volume from US sources once the new deal starts in 2028. Group General Manager Vivek Mittal told analysts that Qatar is willing to consider the request and could offer “certain portion of volume from other sources which they have tied up.”
This approach preserves the commercial and political relationship with Doha while giving India access to non-Gulf molecules. The contract remains with Qatar, only the physical origin of some cargoes would change.
The arrangement reduces single-point exposure to Gulf disruptions and strengthens energy security. Commercially, it lets India tap US LNG without negotiating an entirely new long-term deal from scratch. Geopolitically, New Delhi maintains a strong partnership with Qatar while quietly building a more resilient multi-source portfolio. Asian buyers increasingly seek greater origin and destination flexibility in long-term contracts, and this discussion fits that wider pattern.
Talks remain at an early stage, and specific volumes or commercial terms have not yet been finalized. Petronet is reshaping a traditional long-term contract into a more flexible platform for future supply security. Success would give India a stronger, more adaptable LNG strategy beyond 2028.
We use cookies to ensure you get the best experience on our website. Read more...
