To boost India’s energy growth cycle, Russia finally agreed to exceed the supply of LNG in India. According to Economic Times news, Russian government will boost the regular LNG supply to India by year 2016. During PM Manmohan Singh recent trip to Russia, both the govt. mutually agreed to supply required LNG supply to India by next five years. PM has had strong talks on building relationship in Oil & Gas projects in Russia. Since companies like ONGC have shown interest in the Russian blocks for exploration & development projects in Russia.
Image Courtesy: TOTAL
Kremlins currently undergoing Presidential elections, as huge mess created over Putin’s future. Russian economy seems sinking due to political instability after 2009 economic recession. The worst part of Russia is about potential judgments. Being a rich & powerful nation, Russians are still struggling for economic breakthrough.
As projected, India’s gas consumption is projected to increase 70 per cent by 2020. Presently OVL has 20 per cent stake in Sakhalin-1 Russian block, which has estimated reserves of about 307 million tons of oil (2.3 billion barrels) and 485 billion cubic meters of gas (17 trillion cubic feet).
Press Statement –
Medvedev said that Russian natural gas monopoly Gazprom has inked the memorandum covering major supplies of LNG to India with several Indian companies. Gazprom CEO Alexei Miller last month said the company would participate to support India’s growing demand for LNG into account in its plans to construct new export facilities under the Eastern Gas Programme. (Courtesy: ET News)
Russia is today the second largest producer of LNG (Liquefied Natural Gases) after Qatar. India is exporting dominant LNG from Qatar Gas through Petronet LNG. Report says, India plan that OVL will participate in Yamal Project which is being implemented by Novatek and France’s Total. Liquefied natural gas on the Yamal Peninsula in the Russian Arctic is at an estimated cost of USD 15-20 billion.
The question is still confusing since are we able to cater our demands from LNG supplies? Energy crisis chapter seems very critical in India’s economics fundamentals.
News Source: ET, Image Courtesy: Total.com