Russia’s largest liquefied natural gas (LNG) producer Novatek is set to supply natural gas to Indian companies including GAIL, notified the company’s head Leonid Mikhelson on Monday.
The payment would be considered in rupees, the head added.
He further mentioned that European consumers’ interest in the Russian LNG was side-lined due to their country’s sanctions imposed on Russia following its Ukraine invasion.
In response to the cut-off, Europe has increased its imports of seaborne LNG gas transportation in liquid form at minus 160 degrees Celsius.
Meanwhile, some industry sources claim, Novatek has almost closed a supply gas deal with GAIL, an alternative market to Europe.
Commenting on the same, Mikhelson said, we are looking for more than one Indian company to develop a long-term contract in the Indian market.
He added we are planning to expand our engineering companies in India and looking forward to investing in the promotion of demand, and regasification terminals and LNG retail stations.
He also stressed the decline in LNG production at the Yamal LNG plant by 5 per cent this year than in 2022 due to delayed maintenance.
However, Russia’s Indian venture is likely to be compared with its European supplies which were around 17 million tonnes of LNG last year according to reports.