Exxon aims to multiply its long-term gas supply deals with India
After the Prime Minister announced the rise of the gas share in the country’s energy mix, more and more companies are investing in fuel infrastructure.
After completing a deal to supply 1.5 million tonnes of liquefied natural gas to Petronet, ExxonMobil is looking to establish more similar long-term deals in India. The oil company is projecting on the potential growth of fuel demand in the country after the Primer Minister, Narendra Modi, set to raise the current 6.2% share of gas in the country’s energy mix to 15% by 2030.
"We're certainly happy to work with our friends and partners in India to sign the kind of long-term contracts that allow a large part of the energy demand to be de risked from a price perspective," said Monte Dobson, CEO of ExxonMobil Gas India, in an article published by Reuters.
Several other companies are working to meet the rising demands of the world’s fourth biggest importer of gas. Pipelines and gas import terminals are being built to anticipate future high demand. According to the news agency, Dobson stated that India needs to build a “stable base” of long-term contracts in order to lower the risk of registering price volatility.
At the World Energy Policy Summit, the company’s representative assured that the “real solution” for volatility is securing more long-term supplies. The statement comes amidst many countries are handling rises in energy costs, after the United Kingdom announced a 54% rise in energy bills from April.
