India is in talks with the Russian energy giant Novatek to buy a 9.9% stake in the Arctic LNG 2 project, the Interfax news agency reported on Monday citing its sources.
According to people familiar with the matter, the purchase of shares is being discussed by Indian companies Oil & Natural Gas Corporation Limited (ONGC) and Petronet LNG.
India’s energy minister, Hardeep Singh Puri, said last week during Russia’s Eastern Economic Forum that “A number of new potential investments have been discussed, including Vostok Oil, Arctic LNG 2, petrochemical projects.” He added: “I am sure that in the coming months, all this will lead to a strengthening of relations between Russia and India, especially in the energy sector.”
The minister also said he sees the potential for increasing supplies of liquid hydrocarbons and gas from Russia to India.
Since 2018, Russia has been successfully shipping liquefied natural gas (LNG) to India as part of its mounting exports of energy resources to the country. Moscow has also invited New Delhi to explore potentially lucrative oil and LNG projects in the Arctic.
Novatek’s Arctic LNG 2 facility on the Gydan Peninsula includes the construction of three LNG trains, with a total production capacity of 19.8 million tons per year. The project is expected to be launched in 2023.
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