In a significant boost to India’s energy security, Qatar’s national energy company QatarEnergy has signed a 17-year sales and purchase agreement (SPA) with India’s Gujarat State Petroleum Corporation (GSPC) for the supply of up to 1 million tonnes per annum (MTPA) of liquefied natural gas (LNG).
According to the terms of the deal, LNG supplies will begin in 2026 and will be delivered ex-ship to various import terminals in India.
QatarEnergy’s President & CEO, Saad Sherida Al Kaabi, described the agreement as an extension of a longstanding partnership between the two entities.
He said in a statement that the long-term SPA “highlights our continued commitment to supporting India’s growing energy needs” and reinforces QatarEnergy’s role in delivering safe and reliable LNG supplies to India.
The agreement builds on an earlier long-term deal between the two firms signed in 2019, reflecting growing collaboration between QatarEnergy and GSPC.
From an Indian perspective, the deal comes at a pivotal time as India accelerates its efforts to expand LNG import capacity and diversify its energy mix in line with its net-zero ambition for 2070.
Energy analysts say this arrangement helps India further strengthen its supply chain for natural gas — an increasingly important fuel as the country transitions away from coal and oil toward cleaner alternatives.
For QatarEnergy, the deal opens up a long-term dependable market in India, the world’s third-largest LNG importer, and underlines the Gulf state’s strategic role in global LNG trade.
The five-year gap between signing and commencement (i.e., from 2026) aligns with India’s infrastructure expansion timeline, including development of new LNG import terminals.
Market commentators note that the 1 MTPA annual volume is modest compared to India’s overall LNG imports, but the duration and reliability of the contract carry strategic value.
With global LNG supply more contested and long-term contracts less common than in past decades, this agreement signals both companies’ willingness to lock in long-term partnerships in a shifting energy landscape.
The ex-ship delivery mechanism means that QatarEnergy bears responsibility for shipping the cargoes to India’s terminals, reducing GSPC’s logistical burden.
The timing of the deal is also notable given India’s push to raise natural gas’ share in its overall energy consumption. The country currently has eight operational LNG import terminals with a combined capacity of about 52.7 MTPA, and aims to add more capacity by 2030.
For India’s state-owned GSPC, this supply contract provides a stable long-term feedstock for its growing downstream and trading ambitions, and strengthens its position in the domestic gas market.
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