(EnergyAsia, June 25 2014, Wednesday) — Fresh from signing a world-record gas-supply deal with China, Russia’s Gazprom is expanding ties with India through new agreements to increase the supply of liquefied natural gas (LNG) and to jointly develop upstream projects.
The Russian firm’s Singapore-based subsidiary, Gazprom Marketing & Trading, will raise the annual supply of LNG to India to 3.5 million tonnes from 2.5 million tonnes under the original 20-year agreement signed in 2012 with state-owned Gas India Limited (GAIL). The two companies have also added an option to extend the agreement to 25 years.
Gazprom is also interested to expand sales to Indian Oil Corp Limited, Gujarat State Petroleum Company (GSPC) and Petronet LNG Limited. In 2011, it signed memoranda of understanding to for the annual supply of 2.5 million tonnes of LNG to these state-owned firms.
Separately, Gazprom has signed an agreement with Oil India Limited (OIL), the country’s second largest upstream firm, to jointly explore for opportunities around the world. Apart from exploration and production activities, they will also consider developing LNG projects and share technology.
In May, Gazprom signed an agreement for the annual supply of 38 billion cubic metres of piped gas to China National Petroleum Corp (CNPC) over a 30-year period starting 2018. The deal is worth US$400 billion, making it the largest natural gas sales in history.
Russia is also looking to expand into India as part of its growing reach into Asia.
Rosneft, one of the world’s largest upstream firms, is in talks with India’s state firms to supply oil as well as jointly develop LNG projects.
In March, CEO Igor Sechin and a delegation comprising Rosneft and other officials accompanied Russian President Vladimir Putin to India to deepen ties with Asia’s third largest economy. Rosneft held high-level talks with India’s largest state-owned upstream firm Oil and Natural Gas Corp to explore and produce hydrocarbons as well as participate in the development of an LNG project in Russia.