The Gulf’s ‘middleman’, a reliable supplier of LNG-LPG… Why does tiny Qatar have a big role in India’s ‘Arab Dream’?

New Delhi: Qatar, located in the Persian Gulf, has a population of only 29 lakhs. Out of this population of 29 lakhs, 8 lakh 35 thousand are Indians. But Qatar (11,571 sq km), which has an area equal to India’s Tripura (10,486 sq km), is a reliable partner for India’s energy security. India maintains close and friendly relations with Qatar not only for energy but also for diplomatic and strategic engagement.

Prime Minister Narendra Modi reached the airport to receive Qatar’s Emir Sheikh Tamim bin Hamad Al Thani, who arrived in New Delhi on Monday evening. PM ​​Modi addressed Qatar’s Emir as his brother. While posting the pictures of the welcome of the Emir of Qatar on Instagram, he wrote, “My brother went to the airport to welcome the Emir of Qatar Sheikh Tamim bin Hamad Al-Thani. I hope his visit to India will be successful. I am excited about our meeting on Tuesday.”

If you are curious about India’s enthusiasm for the Emir of Qatar, then know that Qatar has recently abolished the death sentence of 8 former officers of the Indian Navy, who were convicted of alleged espionage in Qatar. 7 of these former officers have returned to India. While talks are going on to bring the 8th officer to India as well. India’s ‘Arab Dream’ In simple words, India’s ‘Arab Dream’ is the story of the emergence and flourishing of India’s strategic, tactical, economic and cultural ambitions in the Gulf region. Qatar has been tremendously helpful in realizing this dream of India. Serious and effective discussions are expected on these topics during the two-day visit of the Emir of Qatar to India. Qatar’s LNG-LPG is important for India

According to the International Energy Agency, India consumed about 65 billion cubic meters of gas in 2024. By 2030, this requirement will increase to 120 billion cubic meters. The question is that India does not have such a large amount of natural gas, then from where does India import this gas? The answer to this concern of India is the huge amount of liquefied natural gas present in Qatar.

According to the Indian Embassy in Qatar, Qatar is India’s largest LNG (liquefied natural gas) supplier. In the financial year 2022-23, India imported 10.74 million metric tonnes of LNG from Qatar. Its cost was $ 8.32 billion. This is 48 percent of India’s total LNG imports. That is, India imports half of its total LNG imports from Qatar only. Qatar is also India’s largest LPG supplier. In the financial year 2022-23, India imported 5.33 million metric tonnes of LPG from Qatar. Its value is $4.04 billion. India imports 29 percent of its total LPG imports from Qatar only.

Apart from LNG, India also imports ethylene, propylene, ammonia, urea and polyethylene from Qatar. There has been a trade of $18.78 billion between India and Qatar in the financial year 2022-23. In this, India has purchased $16.81 billion from Qatar and sold only $1.97 billion. That is, the trade balance in the business between the two countries remains in favor of Qatar. That is why not only India but Qatar is also engaged in welcoming a wealthy customer like India.

Qatar gives special preference to customers like India
It is worth noting that India ranks third among the top three customers of Qatar. India ranks third after China and Japan in buying goods from Qatar. That is why Qatar also gives special offers to India. In 2016, Qatar had reduced the price of LNG for India by more than 50 percent. The then Petroleum Minister Dharmendra Pradhan had said that after several rounds of talks with Qatar, the government there had agreed to fix the price of LNG at $5 per metric million British thermal unit.

Earlier in 2015, India had to buy liquefied natural gas from Qatar at the rate of $12 per metric million British thermal unit. India had benefited billions of dollars from this deal. Due to a good business deal with Qatar, India saved $15 billion on gas deals from 2003 to the next 11 years. This has been possible due to Qatar selling gas to India at low prices. According to the Qatar Chamber of Commerce and Industry (QCCI), more than 15000 large and small Indian companies operate in Qatar, which are wholly owned and joint ventures.