India Looking to Source Russian Oil, LNG via Arctic Route

India is considering sourcing crude oil and LNG from Russia via the Arctic route, Indian petroleum and natural gas minister Dharmendra Pradhan said after meeting a Russian delegation in New Delhi on January 14.

“We are keen to explore the new sea route to source crude oil and LNG through Russia’s Arctic. The route has the potential to cut the cost and time for transporting LNG from Russia to India. A sea line between Far-East Russia and the East coast of India will also facilitate sourcing of coking coal from the region,” he said.

Pradhan noted that India was working on becoming a gas-based economy, investing over $60bn in developing natural gas supply and distribution infrastructure. Russian gas can help in achieving this goal, he said.

“LNG imports from Russia at competitive rates will help us in meeting the objectives of price stability and energy security,” the minister said. Indian state-run Gail already imports LNG from Russia, receiving its first cargo from Gazprom in June 2018 under a 20-year,  2.5mn mt/yr contract.

The present Indian government is investing in gas and LNG infrastructure to boost demand for gas. Its aim is to expand the share of gas in energy mix from 6-7% to 15% by 2030.