Wedoany.com Report-Nov. 8, India’s largest gas importer, Petronet LNG, announced that it will receive 500,000 tons of liquefied natural gas (LNG) in 2026 under a 1.2 million-ton-per-year supply agreement with ExxonMobil from Australia’s Gorgon project. The company’s Managing Director, A.K. Singh, said on Friday that the deal, signed in 2017 for 15 years, will begin with the first cargo expected between March and April next year.

An Exxon gas station seen in Washington, U.S., November 26, 2024.

Petronet already imports 1.42 million tons of LNG annually from the Gorgon project under a separate long-term contract with ExxonMobil, which holds a stake in the project. Singh stated that ExxonMobil will deliver about eight cargoes in 2026, with volumes gradually increasing over three years to 20 cargoes annually, equivalent to 1.2 million tons per year.

Addressing market conditions, Singh noted that global LNG prices could stay around $11 to $12 per million British thermal units if the upcoming winter is severe. However, he anticipates a decline in prices in 2026 as new LNG supplies enter the global market, helping to balance demand and stabilize costs.

India is working to expand its gas infrastructure to support its goal of raising the share of natural gas in the national energy mix from the current 6.2% to 15% by 2030. Petronet is playing a key role in this plan through several infrastructure projects aimed at strengthening the country’s LNG import and distribution capacity.

Singh said Petronet plans to complete the expansion of its Dahej LNG import terminal in western India to 22.5 million tons per year by March 2026. The company also operates a 5-million-ton-per-year LNG terminal at Kochi in southern India and is constructing a new 4-million-ton-per-year facility at Gopalpur in Odisha state on the eastern coast. These expansions are expected to enhance India’s ability to meet growing domestic demand and ensure reliable energy supplies for industrial and power generation sectors.

Petronet’s ongoing collaboration with ExxonMobil underscores India’s broader strategy to diversify its energy imports and secure stable, long-term supplies amid fluctuating global energy markets. The increased LNG imports from Australia will contribute to India’s energy transition goals by promoting cleaner fuel use while supporting infrastructure growth across regions.

Singh emphasized that as more global LNG projects become operational over the next few years, India’s position in the LNG trade is likely to strengthen, allowing for competitive pricing and improved energy security. The new supply from ExxonMobil, combined with Petronet’s infrastructure upgrades, marks a key step in advancing India’s long-term energy diversification and sustainability objectives.