Petronet LNG, India’s largest liquefied natural gas (LNG) importer, is negotiating with Qatar to secure early delivery of more than 90 delayed LNG cargoes as disruptions in the Middle East continue to affect energy supplies. The company is seeking to recover shipments that were delayed following the disruption around the Strait of Hormuz and earlier disagreements over contractual pricing. Petronet CEO Akshay Kumar Singh said the company wants Qatar to deliver the pending volumes as soon as the situation normalises.
Of the 75–80 cargoes expected between March and October 2026, only around six had arrived, according to the company’s management. Another 15–16 cargoes remain pending from a 2015–16 settlement agreement, taking the total backlog to more than 90 shipments. Although the existing contract allows Qatar to make up for the delayed deliveries during a recovery period from May 2028 to April 2029, Petronet is pushing for earlier supplies to meet India’s natural gas requirements and reduce dependence on expensive spot-market purchases.
Petronet LNG Seeks Early Delivery of More Than 90 Cargoes
Petronet LNG has entered discussions with QatarEnergy to recover delayed shipments under its long-term LNG supply arrangement.
Under the existing agreement, Qatar is required to supply Petronet with 7.5 million tonnes of LNG annually. This normally translates into approximately nine to 10 cargoes every month.
However, deliveries have been severely affected since March 2026, when QatarEnergy declared force majeure following disruptions linked to the conflict involving Iran and attacks on energy infrastructure.
According to Petronet management, the company was expecting approximately 75–80 cargoes between March and October but received only six.
The pending shipments also include around 15–16 cargoes that were not delivered during 2015–16 because of pricing disagreements.
| Shipment details | Reported figures |
|---|---|
| Annual Qatar LNG supply commitment | 7.5 million tonnes |
| Normal monthly deliveries | 9–10 cargoes |
| Cargoes expected between March and October 2026 | 75–80 |
| Cargoes received during that period | Around 6 |
| Delayed cargoes from 2026 disruption | 75–80 |
| Older pending cargoes from 2015–16 | 15–16 |
| Total pending shipments | More than 90 |
The company is seeking to recover these volumes earlier than the contractual deadline because long-term LNG supplies are generally more economical than buying replacement gas at volatile spot-market prices.
Why Are Qatar’s LNG Shipments Delayed?
The supply disruption is linked to the conflict in the Middle East and the resulting problems around the Strait of Hormuz.
The waterway is one of the world’s most important energy shipping routes, connecting major Gulf producers with international markets.
Qatar is a major global LNG exporter, and its shipments to India depend heavily on safe and reliable maritime routes.
In March 2026, QatarEnergy declared force majeure on affected LNG deliveries after attacks linked to the Iran conflict disrupted operations and shipping.
Force majeure is a contractual provision that can release a party from certain delivery obligations when extraordinary circumstances beyond its control prevent it from fulfilling the agreement.
QatarEnergy has extended the force majeure period through December 2026, according to Petronet management.
The disruption has affected not only Petronet but also other Indian companies that depend on LNG supplies from the Middle East.
Petronet Wants Qatar to Deliver Missing Gas Before 2028
Under the existing contractual arrangement, Qatar has a designated recovery period to make up for deferred and force majeure-affected cargoes.
The recovery window runs from May 1, 2028, to April 30, 2029.
However, Petronet wants to receive the missing shipments earlier.
The company’s management believes early deliveries would help meet India’s growing gas demand while reducing the need to purchase more expensive LNG from the spot market.
The difference between long-term contract prices and spot-market prices can be substantial, particularly during periods of geopolitical disruption.
Petronet management has said discussions with Qatar are progressing, but the supplier cannot commit to a delivery schedule until conditions improve.
The contract also provides for the older pending cargoes from the 2015–16 settlement agreement to be delivered during the same recovery window at the existing long-term contractual pricing formula.
This means Petronet would not need to negotiate fresh prices for those shipments.
Petronet Renews Qatar LNG Supply Agreement Until 2048
Despite the current disruption, Petronet has renewed its long-term supply relationship with QatarEnergy.
The existing agreement, originally signed in 1999, was scheduled to expire in April 2028.
Petronet subsequently signed a new 20-year agreement with QatarEnergy covering 7.5 million tonnes of LNG annually from May 2028 until December 2048.
The renewed contract is important for India’s long-term energy security because Qatar is one of the country’s largest LNG suppliers.
The new agreement also introduces a significant change in shipping arrangements.
Under the existing contract, Petronet purchases LNG on a free-on-board (FOB) basis. This means the buyer arranges transportation and assumes responsibility for the cargo after loading.
The renewed agreement will use delivered ex-ship (DES) terms, under which the supplier is responsible for arranging delivery to the receiving terminal.
This shifts more of the shipping responsibility and associated voyage risks to QatarEnergy.
Petronet management has indicated that the revised arrangement offers better terms than the existing contract, although the detailed pricing formula has not been disclosed.
India Looks to Diversify LNG Imports
The disruption has encouraged Indian energy companies to reconsider their dependence on a limited number of suppliers and shipping routes.
Petronet management has said that price should not be the only factor when choosing LNG suppliers. Reliability, supply security and shipping geography have also become important considerations.
India is exploring additional LNG supplies from countries including:
- United States
- Australia
- Oman
- Nigeria
- Angola
On November 3, Petronet also disclosed discussions with Qatar about the possibility of sourcing some US-produced LNG under the renewed long-term contract beginning in 2028.
Qatar has indicated that it is willing to consider the request and could potentially supply a portion of the contracted volume from other sources it has secured.
QatarEnergy has entered into long-term agreements with US LNG producers, including Woodside and Cheniere Energy, with deliveries expected to begin in 2030.
Such an arrangement could help India diversify the geographical origin of its gas supplies while maintaining its long-term commercial relationship with Qatar.
Petronet Expands Dahej LNG Terminal Capacity
Petronet has also increased the capacity of its Dahej LNG import and regasification terminal in Gujarat.
The terminal’s capacity has expanded from 17.5 million tonnes per year to 22.5 million tonnes per year.
The expansion is intended to support higher LNG imports as India’s natural gas consumption grows.
However, the company said that much of the terminal’s capacity has already been leased to other state-run oil and gas companies, which have their own LNG import agreements.
These companies have also experienced delays in some of their Middle Eastern supplies because of the disruption around the Strait of Hormuz.
Petronet management said alternative cargoes, including Australian LNG under its ExxonMobil supply arrangement, have helped maintain terminal operations.
The additional capacity could become important when delayed Qatar shipments are eventually restored.
Petronet LNG Reports Higher Profit Despite Supply Disruptions
The supply disruption comes as Petronet reports a mixed financial performance for the second quarter of FY27.
The company recorded a 54% year-on-year increase in consolidated net profit, reaching ₹1,235 crore compared with ₹802 crore in the corresponding quarter last year.
However, revenue from operations declined 34.5% to ₹7,202 crore.
| Financial metric | Q2 FY27 | Year-on-year change |
|---|---|---|
| Consolidated net profit | ₹1,235 crore | +54% |
| Revenue from operations | ₹7,202 crore | -34.5% |
| Dahej terminal LNG throughput | 216 TBTU | Up from 211 TBTU |
| Total company LNG throughput | 231 TBTU | Up from 228 TBTU |
| Interim dividend | ₹7 per share | Approved |
The company’s Dahej terminal operated at 73% capacity utilisation during the quarter, compared with 92% a year earlier. Overall capacity utilisation stood at 64%, down from 78%.
The financial results show that higher profitability can coexist with lower revenue and capacity utilisation, reflecting the impact of changes in LNG volumes, prices and operating conditions.
The Bigger Picture
Petronet’s negotiations with Qatar highlight the importance of energy supply security for India. The country relies on imported natural gas for power generation, fertiliser production, industrial activity and city gas distribution.
Disruptions in the Strait of Hormuz have demonstrated how geopolitical tensions can affect energy availability, shipping costs and supply contracts.
The situation is also encouraging India to diversify its LNG sourcing strategy. Long-term agreements can provide pricing stability, but companies increasingly need flexibility in supplier selection, shipping arrangements and delivery routes.
For Petronet, recovering the delayed cargoes could reduce dependence on spot-market purchases and help meet domestic demand. The outcome will also influence how Indian energy companies structure future international supply agreements.
Looking Ahead
Petronet will continue discussions with Qatar to bring forward the delivery of delayed LNG cargoes, although the timing depends on the normalisation of regional conditions. The contractual recovery period from May 2028 to April 2029 remains available if early deliveries cannot be arranged.
The company’s renewed 20-year agreement with Qatar, expanded Dahej terminal and discussions about sourcing US LNG could shape India’s natural gas supply strategy over the coming years. The immediate priority, however, remains recovering the missing shipments and securing reliable supplies at a time when global energy markets remain exposed to geopolitical risks.
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