India, Qatar set up task force to identify projects for investment
- IBEF
- December 14, 2020
On Friday, India and its largest LNG supplier Qatar agreed to establish a task force to determine projects for investment by the gas-rich Gulf nation in India, stated Oil Minister Mr. Dharmendra Pradhan.
Under a long-term deal, India imports 8.5 million tonnes per annum of liquid gas (LNG) from Qatar. In order to meet the rapid cooking gas demands in the region, it also purchases LPG.
Mr. Pradhan tweeted, “Have a telecall on the promotion of Qatar Petroleum with HE Mr. Saad Sherida Al-Kaabi, Qatar's Minister of State for Energy Affairs and President & CEO, on fostering Qatari investment in India's overall energy value chain.”
The call, he stated, was a follow-up to the December 8 interaction between Prime Minister Mr. Narendra Modi and the Emir of Qatar, Mr. Sheikh Tamin bin Hamad Al-Thani.
He said, “Minister Mr. Al-Kaabi and I have agreed to set up an Energy Task Force, represented by Qatar Petroleum VP and @PetroleumMin senior officer, to evaluate unique projects for Qatari investment across India's energy sector.”
The national oil company of the Gulf country, Qatar Petroleum, will be represented in the Task Force by the Vice President (VP), while the Indian part will be presented by senior officials from the Ministry of Petroleum and Natural Gas.
“I have affirmed the position of Qatar as a reliable LNG and LPG supplier. We also agreed to further enhance cooperation in the energy sector and shift to a holistic one beyond the buyer-seller relationship, including two-way investments,” Mr. Pradhan said.
During the call between Mr. Modi and the Emir of Qatar on 8 December, the two countries agreed to establish a special unit to evaluate and encourage Qatari investment in India, including in the field of energy.
The Qatar Investment Authority is planning to diversify in India especially in the energy and infrastructure sectors.
India aims to increase its consumption of gas substantially and extend its gas infrastructure. In the construction of gas infrastructure that includes pipelines, city gas distribution and LNG re-gasification terminals, an investment of US$ 66 billion is set up, Mr. Pradhan said earlier this month.
For its part, Qatar considers LNG to be a crucial component of India's initiatives to enhance its gas-based economy.
India plans to increase the share of natural gas in its energy basket from the current 6.3% to 15% by 2030.
India pursued Qatari investment in India's oil and gas exploration and development as well as its involvement in the construction of the second phase of strategic oil reserves during Prime Minister Mr. Modi's June 2016 visit to Doha.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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