India has asked Qatar to hasten the delivery of 58 delayed liquefied natural gas (LNG) cargoes on the back of the ongoing power crisis in the country, according to sources familiar with the matter who chose to remain anonymous.
This is the worst ever power shortage witnessed by the subcontinent as coal shortage and hiking global energy prices continue to play their cards.
The delivery of 50 LNG cargoes was set to be completed by now but was delayed because of the infrastructural maintenance going on at supplier Qatargas. India’s oil ministry intervening last week had to write a letter seeking delivery of those cargoes.
The ministry also spoke about the eight additional cargoes which were delayed last year at New Delhi’s request after COVID-induced lockdowns lowered demand for the super-cooled fuel, they said.
Petronet LNG, India’s top gas importer, has long-term deals to buy 7.5 million tonnes per year (mtpa) of LNG from Qatar and 1.44 mtpa from Exxon’s Gorgon project in Australia.
Under those long-term deals, LNG costs about $11-$12 per million British thermal units (mmBtu), compared to more than $38 per mmBtu on Asia’s spot gas market currently and a record high of over $56 hit earlier this month.
“Indian customers in August started deferring imports of spot LNG due to high prices,” Petronet LNG CEO A.K. Singh said at the time. He added that once prices of LNG rise above about $10/mmBtu, the Indian power sector reduces its intake of LNG.
Out of the 24 gigawatts (GW) of gas-fired power generation capacity that India has, about 14 GW has been halted for more than 10 years due to non-availability of gas, while the remaining plants are operating at a very low capacity.
India’s oil ministry, Qatargas and its parent company Qatar Energy did not respond to Reuters’ emails seeking comments.