Adnoc Gas, TotalEnergies, Gunvor in fray for BPCL’s ₹35,000-cr LNG contract

India’s refiners and fuel provide companies have been actively scouting for long-term fuel contracts worldover in a bid to attain vitality safety amid an unsure commerce state of affairs and submit Russian main Gazprom’s contract renege with India’s state-owned Gail in 2022.

Earlier this month, India’s second-largest oil advertising agency BPCL had launched a young to safe a complete of 68 cargoes of liquefied pure fuel (LNG) valued at round ₹35,000 crore.

“BPCL is at the moment operating an enquiry, the place for the following 10 years we’re eager to supply cargoes, 4 cargos (yearly) in the primary three years, after which eight cargos yearly in the remaining seven years,” mentioned one of many two individuals cited above, requesting anonymity. “A complete of 68 cargoes can be round 4 million tonnes over a interval of 10 years… The corporate has acquired 10-plus provides from NOCs (nationwide oil corporations) in addition to international merchants.”

“Adnoc Fuel, TotalEnergies, buying and selling main Gunvor are amongst these in this huge tender. In worth phrases, it could be someplace round ₹35,000 crore,” mentioned a second particular person cited above, who additionally didn’t need to be named.

The event assumes significance for India, world’s fourth largest LNG purchaser, that spends round $15 billion on LNG provides yearly. Imports fill in to satisfy about half of the nation’s LNG demand, with Qatar, the US and UAE being the highest suppliers. In FY25, India imported 35,720 mmscm (million metric customary cubic meters) of LNG price $14.9 billion, as towards 31,795 mmscm buys valued at $13.4 billion in FY24.

Queries emailed to BPCL, Adnoc Fuel, TotalEnergies and Gunvor remained unanswered till press time.

India’s fuel consumption is anticipated to develop, pushed by metropolis fuel distribution and transportation and LNG terminal utilization may rise by 20% by 2030, as provide more and more strikes in direction of LNG imports. On its half, BPCL is about to take a position ₹25,000 crore in town fuel distribution community over the following 5 years. It has already invested round ₹8,000 crore throughout its 26 geographical areas.

BPCL had in February final 12 months signed a five-year cope with Adnoc Fuel to obtain 40 cargoes of LNG totalling 2.5 million tonnes from April 2025.

On the ongoing India Vitality Week, BPCL has signed a time period contract with Brazil’s Petrobras to purchase crude oil price $780 million in FY27. Earlier this month, in the course of the go to of the UAE president Sheikh Mohamed bin Zayed Al Nahyan to India, Adnoc Fuel, signed a pact to produce crude price $2.5 – $3 billion for a interval of 10 years to a different Indian state-run refining and advertising main, Hindustan Petroleum Corp Ltd (HPCL).

Sector consultants mentioned that as international LNG provide expands, India is positioning itself as a benchmark-driven “swing purchaser”, tapping spot and short-term cargoes when worldwide worth markers align with home options, whereas concurrently accelerating the adoption of biofuels to satisfy transport decarbonization objectives

“India is more and more a benchmark-driven swing purchaser, getting into the spot or short-term markets throughout dislocations between WIM (West India Marker) vs Henry Hub vs Brent linked-pricing. India imported slightly below 26 mtpa of LNG in 2025,” mentioned Kenneth Foo, international director for LNG worth reporting at S&P International Vitality. “A further 3.5-4.0 mtpa of long-term contracted volumes is about to begin delivering from 2026. Increased time period provide leaves restricted scope for spot LNG in 2026, particularly if costs stay uncompetitive versus propane, naphtha and gasoline oil.”

This comes in the backdrop of issues over a possible glut in the worldwide market in the following few years as new liquefaction amenities come up in the US and Qatar.

International LNG oversupply of over 100 billion cubic meter yearly is more likely to persist until 2030 making it cheaper for importing international locations, following which new demand is more likely to outstrip provide, in accordance with a McKinsey report launched on Thursday.

(Rituraj Baruah is in Panaji on the invitation of the union ministry of petroleum and pure fuel.)