-
India wants Russian LNG
New Delhi is looking for a long-term contract to ensure its energy security. Russia’s largest liquefied natural gas (LNG) producer, Novatek, is poised to clinch a deal with India’s main gas distributor GAIL on long-term supplies, Reuters reported on Friday, citing industry sources.
A preliminary agreement may be signed as early as this week during a visit by Novatek Chairman Leonid Mikhelson to India for an energy conference, people familiar with the matter told the news outlet on condition of anonymity.
The news comes as GAIL struggles to recover from its 93% slump in profits in the three months to December compared to a year earlier, resulting from a supply disruption on the part of a former unit of Russian energy giant Gazprom.
GAIL had a 20-year contract with Gazprom Marketing and Trading Singapore (GMTS), a former unit of Berlin-based Gazprom Germania. Last year, German authorities took over Gazprom’s subsidiary, now called Sefe, as part of anti-Russia sanctions, without providing compensation payments.
The Indian utility company was forced to resort to gas rationing, and slashed output at its petrochemicals plants after supplies under the deal with GMTS fell through.
Share This
