India is looking at Qatar for sourcing more crude oil and gas to meet its domestic energy demand.
The Petroleum Minister, Mr S. Jaipal Reddy, said with the country's energy requirement growing, India was looking at larger quantities of liquefied natural gas (LNG), crude oil and liquefied petroleum gas imports from Qatar. He, however, did not mention the additional quantum that India was seeking.
In 2010-11, India imported 5.6 million tonne oil from Qatar. India also buys 7.5 million tonne a year LNG from Qatar based on a long-term contract.
Mr Reddy was speaking at the foundation day of Petronet LNG, the country's largest LNG importer by volume. The Qatari Energy and Industry Minister, Mr Mohammed Bin Saleh Al Sada, was also present at the event.
The Qatari Minister said his country was reviewing its commitment for supplies to India. “We would like to continue and widen our relations,” he said.
Almost 80 per cent of India's crude oil requirement is met through imports. The country has been looking at various sources for meeting its requirements following the recent geopolitical situation arising out of the US and European sanctions against Iran.
Currently, Petronet LNG gets 7.5 million tonne of LNG from Qatar. India is looking at additional volume of at least three million tonne at a price which is affordable.
Reacting to the current spike in global crude oil prices, the Qatari Minister said that this was driven by factors other than demand and supply and that there was no shortage of oil anywhere world.
“Oil producers are committed to supplying,” he said.
“When it comes to price, we don't interfere directly with the price since there are so many elements not necessarily fundamentals of demand and supply -- but other factors,” he added.