BPCL’s joint venture renews 20-year partnership with Qatar Energy

Bharat Petroleum Corporation Ltd. | Refineries | Oil & Gas | BSE: 500547 | NSE: BPCL

08 Feb 2024 Evaluate

Bharat Petroleum Corporation’s (BPCL) joint venture -- Petronet LNG (PLL) has concluded and executed a Long-term LNG Sale & Purchase Agreement (LNG SPA) with Qatar Energy for the purchase of approximately 7.5 MMTPA Liquified Natural Gas (LNG) on a long-term basis. PLL is a Joint Venture Company with equity participation from four Oil & Gas Maharatna Public Sector undertakings - Gas Authority of India (GAIL), Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation (IOCL), and BPCL, each holding an equity share of 12.50%, collectively totaling 50%.

LNG SPA is a renewal of the existing agreement signed on July 31, 1999, which was set to expire in April 2028. The new agreement entails deliveries commencing from May 2028 for a duration of 20 years with supplies on a delivered basis. In line with the earlier agreement from 1999, the volumes under the new LNG SPA will be off taken by GAIL (60%), IOCL (30%), and BPCL (10%) primarily from PLL's Dahej Terminal on a substantially back-to-back basis.

The existing long-term agreement between PLL & Qatar Energy accounts for around 35% of India’s LNG imports as of February 6, 2024. The renewal of this agreement is a step in achieving vision of Prime Minister of India to increase share of natural gas in India’s energy basket to 15% by year 2030. This agreement aims to provide energy security and ensure stable & reliable supply of clean energy and help India in its stride towards greater economic development.

BPCL is into exploration, production and retailing of petroleum and petrol related products. The retail business unit of BPCL is into marketing of petrol, diesel and kerosene.