Novatek Enters LNG Pact with Indian Partner
Russian gas supplier Novatek has struck a memorandum of understanding (MoU) with India’s H-Energy Global on collaborating in long-term LNG supplies to India.
The document, signed at the Eastern Economic Forum in Vladivostok and reported as due to happen in The Hindu earlier that day, also envisages the pair jointly investing in each other’s LNG projects, Novatek said in a press release on September 4. While Novatek is plotting a series of new LNG export terminals in the Arctic, H-Energy is developing two import terminals in India. The first of these facilities in the western state of Maharashtra is due to start up in the fourth quarter, with an initial regasification capacity of 3mn mt/yr.
H-Energy aims to break ground on a similar plant in the eastern West Bengal region later this year, which will cater for both the Indian and Bangladeshi markets.
Novatek said the pair might also form a joint venture to market LNG supplied by Novatek to end-customers in India, Bangladesh and other countries.
“India is one of the largest and fastest growing LNG markets, and will be one of the main sources of future growth in global demand for natural gas,” Novatek chairman Leonid Mikhelson was quoted as saying in a statement. He said the preliminary deal with H-Energy was “an important step towards entering the end customer market in India.”
Also at the Vladivostok forum, Novatek signed a deal with Russia's state shipping group Sovcomflot on joint development of ice-class carriers to transport LNG from its Arctic projects.