12 Aug 2019 14:20

Novatek interested in involving Indian companies in Arctic LNG 2, selling LNG to India

MOSCOW. Aug 12 (Interfax) - Novatek is interested in involving Indian companies in the Artic LNG 2 project, the Energy Ministry said in a statement following Deputy Energy Minister Anton Inyutsyn's participation in a plenary meeting of the Russian-Indian business mission aimed at finding tracks for partnerships between the two countries' business communities.

Furthermore, Novatek is interested in concluding a contract for shipment of LNG to India.

"In light of the increased demand for gas on the Indian market and the prospects of developingf new LNG projects, cooperation between Gazprom and Indian partners in LNG sales is becoming strategic in nature. Novatek is interested in involving Indian companies in the Arctic LNG 2 project, as well as in signing of contracts for LNG delivery from the Arctic LNG 2 plant," Inyutsyn was quoted as saying in the statement.

In 2018, India for the first time became Gazprom's leading LNG market, with sales of 760,000 tonnes. A contract between India's GAIL and Gazprom, which supplies the Indian company with shipments from Novatek's Yamal LNG project, entered into force in 2018.

In 2018-2019, shipments should total 500,000 tonnes per year. Gazprom has a contract for acquisition of up to 2.5 million tonnes of LNG annually from the Yamal LNG project, the first stage of which became operational in December 2017, and deliveries under long-term contracts began in Q2 2018. Besides, Gazprom reached an agreement in the contract with Yamal LNG to eliminate the connection to the Indian port. Gazprom is considering the possibility of swap operations in the port of Zeebrugge with LNG it plans to purchase from the Yamal LNG project, Gazprom Export chief Elena Burmistrova said earlier.

Novatek has already found investors for 40% of Artic LNG 2 - Total, CNPC and Japanese consortium Japan Arctic LNG B.V. (a consortium of Mitsui & Co and JOGMEC).

Novatek is not ruling out a further 9.9% reduction in its stake in hopes of expanding operations with end consumers.