Gazprom Global LNG has signed a memorandum to supply up to 7.5m tons of LNG over 25 years to Gail, Gujarat State Petroleum Company (GSPC) and Petronet, Gazprom said on Thursday according to Vedomosti.
On Wednesday the largest Indian LNG importer Petronet LNG announced that it was ready to buy 2.5 million tons annually the next 25 years. And on Thursday it became known that PSPC and Gail are preparing similar contracts.
The deal comes as India steps up efforts to secure Russian energy resources to fuel its rapid economic growth. Its gas demand could double by 2020 as the economy expands by around 8 per cent a year and as LNG is looked to as an alternative to carbon-heavy oil and coal.
At the same time as the memorandums on LNG delivery to India were announced, Russia’s largest shipping company Sovcomflot informed that it has ordered two new 170.000 m³ LNG tankers from South Korea, SeaNews writes.
The supply deals with India could be a catalyst for Russian LNG development including the Shtokman project in the Barents Sea and Yamal LNG.
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The annual volume covered by the Indian deals is equivalent to the projected annual LNG output of Shtokman, a Gazprom-led venture with France’s Total and Norway’s Statoil as partners.
The Shtokman field, located more than 500 kilometers (310 miles) off the coast of Russia in the Barents Sea, may contain 3.9 trillion cubic meters of gas resources. It was originally conceived as a source of LNG exports to North America, but the project has faltered since the US began developing huge shale gas reserves that slashed its gas import requirements.
A final investment decision on the project is expected to be made by the shareholders in June.
