By Nidhi Verma
NEW DELHI (Reuters) -India’s top gas importer Petronet LNG has not received any U.S. request to divert liquefied natural gas (LNG) cargoes to Europe, managing director A.K. Singh told an earnings conference on Thursday.
Washington has approached major energy producers and buyers around the world over a potential diversion of gas to Europe due to simmering tensions between Moscow and Ukraine. Japan said it would divert some LNG cargoes after requests from the United States and the European Union.
“We have not been approached from any forum that there is a need of any diversion,” Singh said, adding that his company had no spare cargoes to divert as most supplies were committed to Indian customers.
Concern has mounted over the possible disruption of piped gas supplies from Russia, Europe’s biggest gas provider, following the buildup of Russian troops near Ukraine and heightened tensions between Moscow and the West.
India imports most of its LNG through long-term deals.
Singh said escalating Russian-Ukrainian tensions could lift prices.
“There could be some demand destructions if the prices are very high but we are also watching very closely the geopolitical development,” he said. “We hope that our country doesn’t get much affected with these things.”
Petronet is in talks with Qatar to procure LNG cargoes the Indian company deferred in previous years, he said.
V. K. Mishra, Petronet’s head of finance, told a call for analysts that the company was asking for delivery of 46 out of the 58 delayed cargoes in 2022.
Mishra also said Petronet wanted to extend a 7.5 million tonne-a-year, long-term LNG supply deal with Qatargas beyond 2028, adding that the two side were discussing pricing and other issues. He said a renewal deal must be concluded by December 2023.
($1 = 74.9926 rupees)
(Reporting by Nidhi Verma; Editing by Tom Hogue and Edmund Blair)
