PANAJI
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No less than 10 world vitality majors—together with Abu Dhabi Nationwide Oil Co. (Adnoc) Gasoline, France’s TotalEnergies and Geneva-headquartered buying and selling agency Gunvor—have proven curiosity in state-run Bharat Petroleum Corp. Ltd’s (BPCL) tender to purchase about 4 million tonnes of liquefied pure gasoline (LNG) over a 10-year interval, two individuals within the know mentioned. The event underscores India’s renewed push to lock in long-term gasoline provides amid geopolitical volatility.
India’s refiners and gasoline provide corporations have been actively scouting for long-term gasoline contracts worldover in a bid to attain vitality safety amid an unsure commerce state of affairs and publish Russian main Gazprom’s contract renege with India’s state-owned Gail in 2022.
Earlier this month, India’s second-largest oil advertising agency BPCL had launched a young to safe a complete of 68 cargoes of liquefied pure gasoline (LNG) valued at round ₹35,000 crore.
“BPCL is at the moment working an enquiry, the place for the subsequent 10 years we’re eager to supply cargoes, 4 cargos (yearly) within the first three years, after which eight cargos yearly within the remaining seven years,” mentioned one of many two individuals cited above, requesting anonymity. “A complete of 68 cargoes could be round 4 million tonnes over a interval of 10 years… The corporate has obtained 10-plus gives from NOCs (nationwide oil firms) in addition to world merchants.”
“Adnoc Gasoline, TotalEnergies, buying and selling main Gunvor are amongst these on this massive tender. In worth phrases, it could be someplace round ₹35,000 crore,” mentioned a second individual cited above, who additionally didn’t need to be named.
The event assumes significance for India, world’s fourth largest LNG purchaser, that spends round $15 billion on LNG provides yearly. Imports fill in to fulfill about half of the nation’s LNG demand, with Qatar, the US and UAE being the highest suppliers. In FY25, India imported 35,720 mmscm (million metric normal cubic meters) of LNG value $14.9 billion, as in opposition to 31,795 mmscm buys valued at $13.4 billion in FY24.
Queries emailed to BPCL, Adnoc Gasoline, TotalEnergies and Gunvor remained unanswered till press time.
India’s gasoline consumption is anticipated to develop, pushed by metropolis gasoline distribution and transportation and LNG terminal utilization may rise by 20% by 2030, as provide more and more strikes in the direction of LNG imports. On its half, BPCL is about to speculate ₹25,000 crore within the metropolis gasoline distribution community over the subsequent 5 years. It has already invested round ₹8,000 crore throughout its 26 geographical areas.
BPCL had in February final yr signed a five-year cope with Adnoc Gasoline to obtain 40 cargoes of LNG totalling 2.5 million tonnes from April 2025.
On the ongoing India Vitality Week, BPCL has signed a time period contract with Brazil’s Petrobras to purchase crude oil value $780 million in FY27. Earlier this month, in the course of the go to of the UAE president Sheikh Mohamed bin Zayed Al Nahyan to India, Adnoc Gasoline, signed a pact to provide crude value $2.5 – $3 billion for a interval of 10 years to a different Indian state-run refining and advertising main, Hindustan Petroleum Corp Ltd (HPCL).
Sector consultants mentioned that as world LNG provide expands, India is positioning itself as a benchmark-driven “swing purchaser”, tapping spot and short-term cargoes when worldwide value markers align with home options, whereas concurrently accelerating the adoption of biofuels to fulfill transport decarbonization targets
“India is more and more a benchmark-driven swing purchaser, getting into the spot or short-term markets throughout dislocations between WIM (West India Marker) vs Henry Hub vs Brent linked-pricing. India imported slightly below 26 mtpa of LNG in 2025,” mentioned Kenneth Foo, world director for LNG value reporting at S&P World Vitality. “An extra 3.5-4.0 mtpa of long-term contracted volumes is about to begin delivering from 2026. Greater time period provide leaves restricted scope for spot LNG in 2026, particularly if costs stay uncompetitive versus propane, naphtha and gasoline oil.”
This comes within the backdrop of issues over a possible glut within the world market within the subsequent few years as new liquefaction services come up within the US and Qatar.
World LNG oversupply of over 100 billion cubic meter yearly is prone to persist until 2030 making it cheaper for importing nations, following which new demand is prone to outstrip provide, in accordance with a McKinsey report launched on Thursday.
(Rituraj Baruah is in Panaji on the invitation of the union ministry of petroleum and pure gasoline.)