H-Energy, Russia's Novatek to set up JV to sell LNG in India

India's H-Energy Global Ltd and Russia's Novatek on Wednesday signed an agreement to provide long-term liquefied natural gas supplies to India and other markets, the Russian media reported.

The document was signed on the sidelines of the Eastern Economic Forum (EEF), the official Tass News agency quoted Novatek as saying.

The deal was announced hours after Prime Minister Narendra Modi arrived here on Wednesday for summit talks with Russian President Vladimir Putin. Modi will also be the chief guest at the EEF on Thursday.

Under the agreement, Novatek will invest in future Liquefied Natural Gas (LNG) terminals and the Joint Venture creation to sell LNG and natural gas to India, Bangladesh and other markets, the report said.

"India is one of the biggest and fast-growing LNG markets, and the country is going to become one of the main growth drivers of the global demand for natural gas in the future.

The signed memorandum is "an important step towards entering the final consumer market of India, which is of great interest for Novatek considering our strategic plans to implement new LNG projects and boost LNG production volumes," Chief Executive Officer of the Russian gas producer Leonid Mikhelson said.

The 5th EEF is being held in Russia's Far East port city of Vladivostok on September 4-6.

Foreign Secretary Vijay Gokhale, briefing reporters on Prime Minister Modi's visit to Russia in New Delhi last week said that expanding cooperation in the hydrocarbons sector will be a major focus area during his trip to Vladivostok.

"The prime minister has said it on a number of times that we need to bring the relationship with Russia beyond civil nuclear and defence cooperation into other areas of the economy," he had said.

The foreign secretary said both sides are expected to firm up a five-year roadmap 2019-2024 laying out possibilities of cooperation in oil and gas sector, in terms of exploration and exploitation, and purchase.