LNG market expansion needs South Asian demand
LNG’s penetration into South Asian markets is significant, but nowhere near its potential. India, Pakistan and Bangladesh represent combined markets of some 1.7bn people. These countries are characterised by static or falling domestic gas production combined with high rates of energy demand growth and a desire to increase the use of gas within their economies to supplant costlier and/or higher emissions fuels. However, South Asian markets are what is known in LNG analyst parlance as ‘price-sensitive.’ What this means in practice is that typically state-owned buyers have low levels of creditworthiness and entrenched debt, the product of being on the wrong side of energy and industrial subsidies. The sale price of electricity and other gas-based products, such as fertilisers, are often below the cost of production in the domestic market, creating a vicious circle of indebtedness. Retreat from the spot market In 2022, as LNG prices rose to record levels, India, Pakistan and Bangladesh all retreated from the spot market, and relied on long-term contracts, which in the case of the latter two at least were insufficient in volume to meet demand for imported gas.
Oil regulator PNGRB launches drive to increase piped gas adoption
Oil regulator PNGRB has launched a two-month long nationwide drive to increase adoption of piped natural gas as a cooking fuel in household kitchens in an attempt to cut dependence on imported fossil-fuels. “The Petroleum and Natural Gas Regulatory Board (PNGRB) along with city gas distribution entities will run a campaign from January 26 to March 31, aimed to promote the adoption of piped natural gas (PNG) among households and to expand PNG consumer base across a broader segment of the population,” it said in a statement. While PNG has gained currency in the last few years after PNGRB expanded city gas networks to most parts of the country, sizable households continue to use either LPG or conventional fuels like firewood and cow dung for cooking. While India is about 50 per cent dependent on imports to meet cooking gas LPG needs, use of conventional fuels is considered a health hazard. PNG offers a viable alternative. It is convenient as it does not require ordering for refills everytime a LPG bottle is exhausted, and is also cheaper. Stating that natural gas is clean and convenient fossil fuel, PNGRB said the campaign will be focussed on those areas where gas pipeline network has been laid or will be laid in the immediate future. Promotion of natural gas is part of the Prime Minister’s vision to increase its share in India’s energy basket to 15 per cent by 2030, from the current 6.2 per cent to transform the country into a gas-based economy. “PNGRB is taking various initiatives to promote natural gas in households as cooking fuel as well as in transport, commercial and industrial sectors,” the statement said. “National PNG Drive is one amongst them to facilitate supply of natural gas to existing registered customers besides enrolling customers for new PNG connections.” City Gas Distribution (CGD) entities will actively participate in the National PNG drive, undertake various promotional activities to increase the awareness on the use of PNG – a clean, environmentally friendly, safe and reliable fuel. Indraprastha Gas Ltd is partnering with PNGRB for the drive in the national capital. Other CGD entities are doing the same in other cities. “During the campaign period, CGD entities will launch various promotional schemes. In addition, the entities will undertake door-to-door campaigns, organize road shows etc to encourage and enrol customers for conversion to PNG,” it said. Till date there are 300 geographical areas (GAs) authorized in the country, covering 98 per cent of the population and 88 per cent of its area for development of CGD Network. “The targets up to 2032 inter alia includes installation of 12.5 crore domestic PNG connections, establishment of 17,751 CNG stations,” the statement said. As on November 30, 2023, 1.2 crore domestic PNG connections and 6,159 CNG stations have been established in the country.
Russia And Iran Finalize 20-Year Deal That Will Change The Middle East Forever
Iran’s Supreme Leader, Ali Khamenei, gave his official approval on 18 January to a new 20-year comprehensive cooperation deal between the Islamic Republic of Iran and Russia, according to a senior energy source in Iran and a senior source in the European Union’s (E.U.) energy security complex, exclusively spoken to by OilPrice.com last week. The 20-year deal – ‘The Treaty on the Basis of Mutual Relations and Principles of Cooperation between Iran and Russia’ – was presented for his consideration on 11 December 2023. It will replace the 10-year-deal signed in March 2001 (extended twice by five years) and has been expanded not only in duration but also in scope and scale, particularly in the defense and energy sectors. In several respects, the new deal additionally complements key elements of the all-encompassing ‘Iran-China 25-Year Comprehensive Cooperation Agreement’, as first revealed anywhere in the world in my 3 September 2019 article on the subject and analysed in full in my new book on the new global oil market order. In the energy sector to begin with, the new deal gives Russia the first right of extraction in the Iranian section of the Caspian Sea, including the potentially huge Chalous field. The wider Caspian basins area, including both onshore and offshore fields, is conservatively estimated to have around 48 billion barrels of oil and 292 trillion cubic feet (tcf) of natural gas in proven and probable reserves. In 2019, Russia was instrumental in changing the legal status of the Caspian basins area, cutting Iran’s share from 50 percent to just 11.875 percent in the process, as also detailed in my new book. Before the Chalous discovery, this meant that Iran would lose at least US$3.2 trillion in revenues from the lost value of energy products across the shared assets of the Caspian Sea resource going forward. Given the newest internal-use only estimates from Iran and Russia, this figure could be a lot higher. Previously, the estimates were that Chalous contained around 124 billion cubic feet (bcf) of gas in place. This equated to around one quarter of the gas reserves contained in Iran’s supergiant South Pars natural gas field that account for around 40 percent of Iran’s total estimated gas reserves and about 80 per cent of its gas production. The new estimates are that it is a twin-field site, nine kilometres apart, with ‘Greater’ Chalous having 208 bcf of gas in place, and ‘Lesser’ Chalous having 42 bcf of gas, giving a combined figure of 250 bcm of gas. The same right of first extraction for Russia will also now apply to Iran’s major oil and gas fields in the Khorramshahr and nearby Ilam provinces that border Iraq. The shared fields of Iran and Iraq have long allowed Tehran to side-step sanctions in place against its key oil sector, as it is impossible to tell what oil has come from the Iranian side or the Iraqi side of these fields, which means that Iran is able simply to rebrand its own sanctioned oil as unsanctioned Iraqi oil and ship it anywhere it wants, as also analysed in full in my new book on the new global oil market order. Former Petroleum Minister, Bijan Zanganeh, publicly highlighted this very practice when he said in 2020: “What we export is not under Iran’s name. The documents are changed over and over, as well as [the] specifications.” Another advantage of the shared fields is that they allow effectively free movement of personnel from the Iranian side to the Iraqi side, and the utilisation of key oil and gas developments across Iraq is a key part of Iran’s longstanding plan, fully supported by Russia, to build a ‘land bridge’ to the Mediterranean Sea coast of Syria. This would enable Iran and Russia to exponentially increase weapons delivery into southern Lebanon and the Golan Heights area of Syria to be used in attacks on Israel. The core aim of this policy is to provoke a broader conflict in the Middle East that would draw in the U.S. and its allies into an unwinnable war of the sort seen recently in Iraq and Afghanistan, and which may soon be seen as the Israel-Hamas War escalates. The price of all manufactured items traded between Russia and Iran, including military and energy hardware, has been formalised in the new deal, although also not in Iran’s favour. For Iranian goods exported to Russia, Tehran will receive the cost of production plus 8 percent. However, these export sales to Russia will not be transferred to Iran, but rather they will be held as credit in the Central Bank of Russia (CBR). Moreover, Iran will receive a huge markdown on US dollar/Rouble or Euro/Rouble exchange rates used to calculate its credits in the CBR. Conversely, for Russian goods exported to Iran, Moscow will receive the payment in advance of delivery and at a much stronger exchange rate that benefits Russia. Moreover, the base price before any exchange rate calculations are made, will be founded on the highest price that Russia has received in the previous 180 days for whichever product it is selling Iran. This system has informally been in place for several weeks now, and according to the senior energy sector source in Tehran exclusively spoken to by OilPrice.com last week, Russia has ensured itself the highest possible price by selling to Belarus at a very large premium whichever product it intends to sell later to Iran, so establishing the required pricing benchmark. Payments for goods and services falling outside the direct finance route between the central banks of the two countries can now be done through interbank transfers between Iranian and Russian banks. Those also involving renminbi can also be done through China’s Cross-Border Interbank Payment System (CIPS) system, its alternative to the globally-dominant Society for Worldwide Interbank Financial Telecommunications (SWIFT) system. In many cases, the expansion of military cooperation between Iran and Russia is tied into the energy sector elements of the new 20-year deal. Progress is earmarked
100 new biogas plants soon to be established in UP: Hardeep Puri
Lucknow, Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Saturday said that 100 new biogas plants will soon be established in Uttar Pradesh. Speaking to reporters in Lucknow before going to the inauguration of the Compressed Bio Gas Plant in Budaun, Puri said that in the last seven years, under the leadership of Chief Minister Yogi Adityanath, the state has shed the label ‘BIMARU’ (sick) state and has done excellent work in every sector. “Today a new compressed biogas plant is going to be inaugurated in Budaun and the foundation stone of new compressed biogas plants will also be laid in eight other districts of the state,” he said. Puri said that the process of land selection for setting up 37 plants is complete. According to a statement by the UP government, Puri said that the Budaun plant, developed on 50 acres with an investment of about Rs 135 crore, will produce about 14 tonne of compressed biogas every day, and will be instrumental in stubble management. Earlier, Adityanath called biogas the best option to realise Prime Minister Narendra Modi’s vision of ‘Waste to Wealth’. Biogas is not only a solution to the problem of smog in NCR (National Capital Region) but also a means to increase the income of farmers, he said. According to Union Petroleum Secretary Pankaj Jain, under the biofuel policy of UP, there is a provision of a grant of up to Rs 20 crore for the establishment of bioenergy plants.
Red Sea Crisis: No disruption in oil flows to India, only freight up, says HPCL head
The ongoing attacks on shipping vessels by Houthi militants in the Red Sea have not impacted the flow of crude oil to India but freight has gone up due to rerouting via the Cape of Good Hope, Hindustan Petroleum Corporation Ltd (HPCL) chairman Pushp Kumar Joshi said. India, the world’s third-biggest oil importer, gets a bulk of its Russian supplies through the Red Sea. Russian supplies made up for over 35 per cent of India’s total crude imports in 2023, amounting to 1.7 million barrels per day. Russian ships and cargoes are not being prime targets of the attacks at this stage however rerouting of ships around the southern tip of Africa instead of transiting through the Suez Canal and Red Sea has led to ships taking longer voyages, resulting in the shortage of ships and rise in freight charges. In a post-third quarter earnings call with investors, Joshi said HPCL has tied up crude oil supplies till mid-April and it does not see any supply disruptions. HPCL meets 44-45 per cent of its crude oil needs on term contracts with national oil companies such as those in Saudi Arabia and Iraq. The remaining is on the spot or from the current market, he said. “Term crude has not been impacted (due to the Red Sea crisis),” he said, adding the spot imports are on DES basis where the shipping is arranged by the supplier. “The spot supplies too are not impacted.” HPCL, he said, has “already tied up crude requirements till fiscal year end (in March) and the first couple of weeks of April.” “Crude oil supplies have not seen any disruption as of now. This has definitely impacted the freight rates and freight rates have travelled northward.” Spot imports include opportunity crude such as Russian oil which is sold at a discount because some western nations have shunned it due to Moscow’s February 2022 invasion of Ukraine. “So far as supply is concerned, I am quite confident that supply requirements are being met. We also have to see how this situation unfolds in the next few weeks, basis that we will have to take a call but as far as the procurement side is concerned, I am already in a comfortable situation till March 31 and two weeks of April,” he said. Joshi said HPCL has tied up both term and spot supplies including opportunity crude till mid-April. “We are not experiencing any disruption there.”. On Russian imports, he said Russian oil made up for 30 per cent of all crude oil imported by HPCL in 2023. While the supplies are not being impacted, the rerouting of ships could inflate insurance costs and crimp refining margins. Shippers are avoiding the Red Sea and Bab al-Mandab Strait after a US-led coalition struck Iran-backed Houthi militants in northern Yemen. This however has impacted diesel exports to Europe. Longer voyages have hit diesel cargo cost, which has increased by USD 850,000-1 million. Due to the rerouting of a voyage through the Cape of Good Hope instead of going through the Suez Canal, shipments from India to the US will take an additional 10-14 days, while shipments from Europe/the Mediterranean will take 20-25 days.
Alaska’s State-Sponsored LNG Project Is Struggling To Find Investors
Last year, the Biden administration issued the green light for ConocoPhillips’ (NYSE:COP) $8 billion Willow project in Alaska, ending the company’s long wait much to the consternation and chagrin of environmentalists. ConocoPhillips is the largest crude producer in Alaska and also the largest owner of exploration leases, with extensive holdings in Prudhoe and the National Petroleum Reserve-Alaska (NPR-A). Whereas the Willow project has frequently garnered the lion’s share of attention and media coverage, another, even bigger, Alaskan energy project has been flying under the radar: the $43B state-led Alaska LNG project. Skeptics have been quick to point out that 2023 was yet another dry year for the ambitious project with no major deals or investments announced by the Alaska Gasline Development Corp., or AGDC. Things came to a head on Monday after Alaska Republican Gov. Mike Dunleavy’s administration presented the Senate Finance Committee with a $4.5 million budget request for the project, only to be met with pushback and sharp questions by three members of the committee. “In my eight years of being a legislator, I don’t think they’ve inked one investment. And so is this a good use of those funds?Or do we need a change in leadership over there?” posed Wasilla Republican Sen. David Wilson. For decades, elected leaders have dreamed about building a natural gas pipeline akin to ConocoPhillips’ 800-mile long trans-Alaska oil pipeline, that could export gas to markets outside of the state, provide cheaper heating fuel for Alaska residents and generate thousands of construction jobs. Geared toward exports to Asian markets, the idea of the project was first mooted by Republican former Gov. Sean Parnell more than a decade ago and his successors, including Dunleavy, have continued to advocate for it. When complete, the project will source its gas from the enormous Prudhoe Bay and Point Thomson oil fields owned by ConocoPhillips, ExxonMobil Corp. (NYSE:XOM) and Hilcorp. A 800-mile gas pipeline would then run south to the Kenai Peninsula, where a LNG plant would liquefy the gas before loading onto tankers bound for Asia. North Slope fields are expected to deliver ~3.5 billion cubic feet of gas per day, enough to meet a quarter of Japan’s gas consumption. Unfortunately, that dream has never been realized with the project struggling to assemble the necessary combination of oil companies willing to sell their gas at a competitive price, investors and customers despite the state spending hundreds of dollars in public funds on the project. The project is eligible for tens of billions of dollars in federal loan guarantees. It’s not for lack of trying, though. Alaska’s statewide elected officials have intensified their efforts to push the project ever since Russia invaded Ukraine two years ago. In 2022, Republican U.S. Sen. Dan Sullivan pushed Alaska LNG to potential investors and buyers in Asia, with help from Rahm Emanuel, U.S. ambassador to Japan. Currently, the project is trying to find investors or partners to provide the $150 million that AGDC needs to finish the engineering and design work required before a final investment decision (FID) can be made. AGDC is offering ownership of more than half of Alaska LNG to fund the entire project, with construction costs to be largely funded by investors or gas buyers. Unfortunately, so far, nobody has been willing to bite. Back in July, the Wall Street Journal reported that potential customers in Japan and South Korea were looking at more competitive LNG projects elsewhere. Nonetheless, multiple sources familiar with the nitty gritty of the project have revealed that two companies are seriously looking into it. The first is Venture Global LNG, a successful startup company with an operating LNG export plant in Louisiana. The company is, however, currently facing serious legal jeopardy with Shell Plc. (NYSE:SHEL) and BP Plc (NYSE:BP) among three companies seeking billions from the company through arbitration for what they claim is failure to fulfill previously negotiated long-term contracts with the European energy giants. On its part, Venture Global has defended itself by saying it’s under no obligation to fulfill those contracts until its export plant is complete and fully online. The other company is Hanwha, a South Korean company with global operations that allegedly met with the Alaskan governor last year. However, these claims cannot be verified after officials from Venture Global and Hanwha failed to respond to requests for comment. Meanwhile, Joey Merrick, a prominent Alaska labor union leader, says he’s leading a new group that’s pitching AGDC on a potential investment in the project. Merrick says he’s working with Fengate, an asset management business, and Ullico Inc., a labor-aligned insurance and investment company. Dubbed Alaska Gasline & LNG, Merrick claims his new company has access to the $150 million needed to advance Alaska LNG to its next stage. “We’re trying to, basically, take control of the project and work with AGDC and move it to the next stepI’m very optimistic. I think this is exactly what the state needs — something to be able to give us some cheaper energy, and something to be able to get us a little income in a different way,” Merrick has said.
India’s renewable energy revolution: Brighter skies ahead
India’s renewable energy journey has been nothing short of remarkable. Driven by strong government support, a burgeoning domestic market, and a growing pool of skilled professionals, the country has emerged as a global leader in renewable energy deployment. The latest IEA report, “Electricity 2024,” further underscores India’s immense potential in this sector. According to the report, India is expected to account for almost half of the world’s additional renewable energy capacity additions through 2026. This growth is attributed to the country’s ambitious renewable energy targets, which call for 40% of electricity generation to come from renewables by 2030. Bhushan Rastogi, Managing Director, Mercados Energy Markets India, commends the Indian government’s efforts in promoting renewable energy. He points to the National Solar Mission, the National Wind Energy Mission, and the Integrated Energy Policy as key initiatives that have provided a strong policy framework for renewable energy development. “These policies have not only driven down the cost of renewable energy but have also created a conducive environment for private sector investment in the sector,” Rastogi says. “This has been instrumental in India’s rapid renewable energy growth.” The IEA report also highlights India’s large and growing domestic market for renewable energy technologies. This market is expected to reach $150 billion by 2025, creating significant employment opportunities and fostering innovation. “The domestic market is a key driver of India’s renewable energy success,” Rastogi explains. “It provides a steady demand for renewable energy products and services, which encourages domestic manufacturing and R&D.” In addition to strong government support and a growing domestic market, India also has a growing pool of skilled renewable energy professionals. This talent pool is being trained at India’s universities and technical institutions, and is also being nurtured by a vibrant start-up ecosystem that is fostering innovation and entrepreneurship. “The availability of skilled professionals is essential for India to continue its renewable energy growth,” Rastogi emphasizes. “These professionals are the backbone of the sector, and they are playing a critical role in ensuring that India meets its ambitious renewable energy targets.” The confluence of these factors – strong government support, a burgeoning domestic market, and a growing pool of skilled professionals – is creating an unprecedented opportunity for India to become a global leader in renewable energy. By harnessing these advantages, India can not only meet its energy needs but also create a cleaner, healthier, and more sustainable future for its citizens. The road ahead is undoubtedly challenging, but with unwavering dedication and strategic partnerships, India is well-positioned to achieve its goals and become a global beacon of renewable energy innovation. The IEA report paints a bright picture of India’s renewable energy future, and it is clear that the country is poised to play a leading role in shaping the global energy landscape.
Indo-Lanka virtual LNG pipeline could bring down electricity costs: New Indian HC
The government has initiated discussions with India to set up a Kochi-to-Colombo virtual liquefied natural gas (LNG) pipeline that could bring down electricity tariffs. “…we are also working to set up a virtual LNG pipeline from Kochi to Colombo to bring down electricity costs in Sri Lanka,” said newly appointed Indian High Commissioner in Colombo Santosh Jha while marking India’s 75th Republic Day on Friday. The latest energy cooperation move between the two countries came in the wake of policy-level agreements on key projects, including a power grid connectivity project to enable Sri Lanka to export power to India and a joint initiative to develop Trincomalee as an economic hub. Pointing out that India was Sri Lanka’s largest trading partner with bilateral trade of USD 6 billion by 2022, High Commissioner Jha expressed hope to “enhance economic partnership and Sri Lanka’s export potential through the early conclusion of the Economic and Technology Cooperation Agreement (ETCA). To date, he noted that India had contributed more than USD 5 billion towards development partnerships, touching every district of the country. The flag hoisting ceremony to mark the 75th Republic Day was held earlier on Friday at India House, while the reception was held later in the day.
India’s gas demand to rise 6% in 2024: International Energy Agency
India’s natural gas demand is expected to rise by 6 per cent in 2024 with a rise in consumption in fertiliser units, power generation and industrial sectors, according to the International Energy Agency (IEA). Following the 7 per cent year-on-year decline observed in 2022, India’s primary gas supply rose by 5 per cent in 2023, with growth primarily driven by the petrochemical, power generation, refinery and industrial sectors. “Natural gas demand in India is expected to increase by 6 per cent in 2024, mainly supported by higher gas use in industry (including in the fertiliser sector) and stronger gas burn in the power sector amid the development of its national pipeline grid and city gas infrastructure,” IEA said Gas Market Report released last week. Liquefied natural gas (LNG) imports rose by 7 per cent on the year to 29 billion cubic meters last year, with import dependency at 44 per cent of the nation’s natural gas consumption. Domestic production was up 6 per cent on the year to 35 billion cubic meters on the back of a rise in output from Reliance Industries’ KG-D6 block. “We expect India to increase its LNG imports in 2024 by 7 per cent, fuelled by demand from the power and fertiliser sectors, as the country plans to stop importing urea by 2025,” IEA said. Natural gas extracted from below surface and seabeds is used to make fertiliser, generate electricity, convert into CNG to run automobiles, piped to households for cooking purposes and used as fuel and feedstock in industries. India’s domestic production is insufficient to meet demand and so the fuel is imported as LNG in cryogenic ships. Power companies imported 2.32 billion cubic meters of LNG in 2023, making up around 9 per cent of total imports and up by 76 per cent on the year. In November 2023 India approved mandatory blending of compressed biogas into the domestic gas supply. The mandate will be set at 1 per cent of total compressed natural gas and domestic piped natural gas consumption from 2025, and raised gradually to 5 per cent from 2028-29. On reforms, IEA said, “India continued to advance gas market reforms in 2023. The country introduced a unified pipeline tariff system on April 1, which could benefit consumers located far from domestic gas supply sources and/or LNG terminals. In addition to the market reforms, India is considering establishing strategic gas reserves to enhance gas supply security”. The Petroleum and Natural Gas Regulatory Board (PNGRB) introduced the Unified Tariff (UFT) policy in April 2023 to create a single, consistent and fair tariff structure for natural gas transport across the country. The UFT policy will apply to a network of 21 pipelines, representing around 90 per cent of pipelines in operation or under construction. The price of transporting gas consists of two components – a fixed unified tariff based on the levelised cost of service of the entire pipeline network, and a variable zonal factor depending on distance. “The UFT policy aims to create a more stable, competitive and transparent pricing regime, which should benefit both gas supply and demand. It is expected to assist the government in achieving the ‘One Nation One Grid One Tariff’ model,” it said. The IEA said India has approved a National Green Hydrogen Mission in January 2023. The mission sets a target for at least 5 million tonnes a year of green hydrogen production by 2030, “with potential to reach 10 million tonnes with growth of export markets”. It proposes two distinct financial incentive schemes to support domestic manufacturing of electrolysers, as well as the production of green hydrogen.
QatarEnergy Nearing Agreement for LNG Supply to India
Qatar Energy is on the verge of finalizing a substantial, long-term agreement to supply liquefied natural gas (LNG) to buyers in India. This impending deal, anticipated to feature more competitive pricing and flexible terms, is poised for completion either by the end of this month or in early February. If successfully sealed, the new contract would extend the duration of existing supply agreements set to expire in 2028, potentially lasting until at least 2050. At present, Qatar provides Indian purchasers with 8.5 million tons per annum of LNG. The impending agreement carries strategic importance for India, aligning with its aspiration to raise the proportion of natural gas in its energy blend to 15% by 2030, a noteworthy escalation from the current 6.3%. The pricing structure of Qatari LNG traditionally hinges on oil prices, utilizing a formula based on a slope or a percentage of crude. The ongoing negotiations suggest that the new deal might be pegged at around a 12% slope of Brent crude per million metric British thermal units. Another proposed pricing approach for supplies to India contemplates a range of 12–12.5% on a free-on-board basis. In the face of escalating competition, notably from the United States, Qatar is strategically positioning itself within the global LNG market. It aims to bolster its liquefaction capacity from 77 million tons per annum (mtpa) to 126 mtpa by the year 2027, Qatar is keen on solidifying its presence in both Asian and European markets. Recent long-term agreements with major European energy companies such as Shell, TotalEnergies, and Eni underscore Qatar’s commitment to maintaining a robust international LNG footprint. The expected deal with India might be officially revealed at an upcoming energy conference slated to occur in India from February 6 to February 9, 2024. Under the existing arrangement, Petronet LNG, India’s foremost gas importer, imports 7.5 million tonnes per annum of LNG from Qatar at a slope of 12.67% and a fixed charge of $0.52. Furthermore, Indian Oil, Bharat Petroleum, and GAIL (India), with stakes in Petronet, collectively purchase an additional 1 million tonne per annum of LNG. Notably, the envisaged deal is expected to confer greater autonomy upon Indian buyers, allowing them to select the receiving terminal within India. This newfound flexibility has the potential to yield substantial cost savings for Indian companies, possibly mitigating expenses associated with pipeline transportation within the country’s grid. Presently, Qatar delivers LNG exclusively to the western state of Gujarat, but this shift in flexibility could open avenues for more efficient and cost-effective logistics for Indian companies involved in the LNG trade.