India signed a $78 billion deal with Qatar to extend its LNG imports until 2048, Indian media reported on Tuesday.
Under the deal, Qatar will provide LNG to India at rates lower than current prices, saving India around $6 billion overall.
The agreement was inked on the first day of India Energy Week 2024 in Goa.
Petronet LNG Ltd, India's biggest LNG importer, said it has signed a pact with QatarEnergy to extend the deal to buy 7.5 million tonne year of gas.
The deal is an extension of Petronet's previous agreement with Qatar from 1999 under which India imports 7.5 million tonnes per annum (MTPA) of LNG. The 1999 deal is due to expire in 2028.
In 2015, India signed another separate contract for 1 MTPA of renewable gas.
Officials from both sides have been engaged in discussion over the renewal of the deal which had a deadline of December 2023.
LNG is usually consumed in India for producing electricity, making fertilizers, and converting them into compressed natural gas.
"Renewal of this agreement is a step towards achieving the vision of the prime minister of India to make India a gas-based economy and increase the share of natural gas in India's primary energy basket to 15 percent by the year 2030. This agreement will provide energy security and ensure a stable and reliable supply of clean energy and help India in its stride towards greater economic development," Akshay Kumar Singh, CEO of Petronet, said in a statement.
India's total imports from Qatar in the financial year 2023 were valued at $16.81 billion, of which LNG imports alone were worth $8.32 billion, or 49.5 percent of the overall imports from Doha.