You are here

Gazprom eyes stake in Indian LNG terminal

08th December 2012

Russian giant Gazprom said to be interested in planned USD 793m LNG terminal in India

Gazprom eyes stake in Indian LNG terminal
India may become a more attractive partner for Russia due to its increasing LNG demand

Russian gas major Gazprom is said to be in talks with Indian Oil Corp Ltd (IOC) for a stake in a planned USD 793 million LNG terminal near Chennai, East India, Live Mint reported on Thursday.

The Ennore refinery will have a capacity of 5 million tonnes per annum (mtpa) liquefied natural gas (LNG), the paper said.

“Talks are on between Gazprom and IOC for a stake in the Ennore LNG terminal. Gazprom is setting up a huge liquefaction facility at Sakhalin. It wants a gasification facility in India to cater to the growing demand here,” the paper cited a person aware of the development as saying on the condition of anonymity.

IOC chairman and managing director R.S. Butola told the paper that he was not aware of Gazprom’s interest but did not rule out a partnership either. “It hasn’t come to our level. We are talking to Gazprom for sourcing LNG for the Ennore project. We are open to partnerships. Whether it will be Gazprom or others has to be decided.”

Gazprom signed a 20-year contract for the supply of LNG with GAIL in early October, with India due to receive 2.5 million tonnes of liquefied natural gas annually. The deal could pave the way for similar natural gas contracts with other Indian companies.

India may become a more attractive partner for Russia due to its increasing LNG demand. However, Gazprom currently produces liquefied natural gas only in one plant in Sakhalin, which has a capacity of just 10 million tonnes. And all of that gas is already accounted for.