India keen to import LNG from Russia

India is keen to import liquefied natural gas (LNG) from Russia to meet its growing energy needs even as Asia’s third largest energy consumer has sought stake in big-ticket oil and gas fields particularly in East Siberia.

Petroleum Minister Murli Deora sought two million tonnes a year of LNG from Russia’s Sakhalin LNG project when he met Russian Prime Minister Vladimir Putin in Moscow earlier this week.

“We conveyed to them our interest for buying LNG,” said Oil Secretary R S Pandey, who accompanied Deora on the two-day visit to Moscow.

Petronet LNG Ltd, the nation’s largest liquefied natural gas importer, is doubling its Dahej terminal capacity to 10 million tonnes by the next year and is keen on imports from Russia that could be doubled to 4 million tonnes a year later.

Putin, according to Pandey, said Russian gas monopoly Gazprom would decide on selling LNG to India and suggested company level talks.

Besides LNG, Deora also pitched for a stake for ONGC Videsh Ltd (OVL), the overseas investment arm of state-run Oil and Natural Gas Corporation, in big-ticket Sakhalin-3.

Pandey said a case was made for OVL joining hands with Russian firm Rosneft for exploration and development of Vankor oilfield in East Siberia. Joint bidding for Trebs and Titov oilfields in Timan Pechora region of North Russia was also discussed.

“Putin told us that the fields were available but Indian companies will have to go through the process, the process of bidding,” he said.

ONGC Videsh Ltd has a 20 per cent stake in Exxon Mobil-operated Sakhalin-1 in Far East Russia.

Deora had, on November 5, met Russian Prime Minister Vladimir Putin and evinced interest in acquiring stake in some oilfields in East Siberia and north Russia.

India is keen on Russian companies investing in new refineries and petrochemical projects in India.

Asked if Putin promised any preferential treatment, Pandey said: “We will have to go through the process.”