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Global Energy Majors Eye India's 10-Year LNG Tender
30 Jan
Summary
- Ten global energy majors, including Adnoc Gas and TotalEnergies, seek BPCL's LNG.
- BPCL's tender aims to secure 4 million tonnes of LNG over a decade.
- This move supports India's energy security amid global geopolitical shifts.
Major global energy firms have shown keen interest in Bharat Petroleum Corp. Ltd's (BPCL) tender for approximately 4 million tonnes of liquefied natural gas (LNG) over ten years. Companies such as Adnoc Gas, TotalEnergies, and Gunvor are among the over ten entities that have responded to BPCL's initiative. This substantial tender, valued at approximately ₹35,000 crore, signifies India's reinforced efforts to guarantee long-term gas provisions in an era marked by fluctuating geopolitical landscapes.
The tender seeks to secure 68 LNG cargoes, with a higher volume planned for the latter seven years of the contract. This move is critical for India, the world's fourth-largest LNG buyer, which relies on imports for about half its demand. Top suppliers currently include Qatar, the US, and the UAE. India's gas consumption is projected to rise, with BPCL itself planning significant investments in city gas distribution.
This development aligns with India's strategy to become a benchmark-driven 'swing buyer' in the global LNG market. Experts note that as global LNG supply is expected to grow, India is well-positioned to leverage market dynamics. Anticipated oversupply in the global market through 2030 may lead to more competitive pricing for importing nations like India.
