GAIL Interested in Vladivostok LNG Stake

India’s state-owned GAIL India Ltd is interested in buying stake in Russia's planned 10 million tonne LNG plant at Vladivostok on the Pacific coast.

The Economic Times has reported that the company is also mulling importing natural gas from the $7-billion project to meet nation's growing energy needs. Gas production from the plant is expected to start in 2016-2017.

Gazprom plans to build a pipeline from the Chayanda gas field in East Siberia to the proposed Vladivostok LNG facility. GAIL's interest in the LNG terminal was flagged during the visit of Russian deputy Prime Minister Dmitry Rogozin last month, sources have told the newspaper.

The Russian energy giant is increasing focus on LNG exports from its Far East Russian fields to South-East Asian markets. It sees growing demand from traditional gas markets such as South Korea and Japan, but also China and India.

Sources said Gazprom's marketing and trading unit last year signed agreement with Indian firms to sell LNG on long-term contracts. Gazprom Marketing & Trading Singapore signed preliminary agreements to sell as much as 7.5 million tonne a year of LNG to Petronet LNG, GAIL and Gujarat State Petroleum Corp.