India's BPCL issues tender for LNG term contract

India's Bharat Petroleum Corporation Limited issued a purchase tender seeking four to eight cargoes per year starting 2026 for a tenure of 10 years, according to traders familiar with the tender and the tender document seen by Platts, part of S&P Global Energy.

The company seeks four cargoes for the calendar years 2026-2029 and then eight a year for the calendar years 2030-2035.

The tender is closing on Jan. 14.

BPCL could not be reached for comment.

BPCL has included the use of Platts JKM in the pricing basis for the tender, according to the tender document. For calendar year 2026, 2027 and 2028, the price formula stipulates a 50%-50% weightage to JKM and Dated Brent 301. Dated Brent 301 is the average of Dated Brent published by Platts over the preceding three months.

Furthermore, the tender has a floor and ceiling price for JKM at $6/MMBtu and $14/MMBtu for this tenure of 2026-2028.

Thereafter, for 2029-2035 the tender stipulates a formula which gives 75% weightage to a crude-linked slope and 25% weightage to a Henry Hub-linked formula.

The slope in 2026-2028 and 2029-2035 has to be the same and the Henry Hub formula cannot have a constant of more than $4.50/MMBtu.

Platts assessed JKM for February at $9.275/MMBtu and West India Marker at $9/MMBtu and Cal 2027-2029 in the range of $8.45-$8.95/MMBtu and $8.05-$8.625/MMBtu for respective benchmarks on Jan. 8.

BPCL allows the counterparties to offer cargoes falling within quantity range of 3.1-3.8 TBtu, with the seller nominating a 400,000-MMBtu range 90 days ahead of the initial delivery window, while 45 days ahead of the initial delivery window the seller would be expected to nominate the final deemed quantity.

The tender also allows the seller the right to cancel one cargo per year starting 2030 at least 90 days ahead of the delivery month. The seller would also have the right to deliver one additional cargo per year once the seller communicates this during the Annual Delivery Program.