India, Russia to Sign 'Major' LNG Deal: Press

India is expected to sign a ‘major’ deal with Russia to import LNG during Indian prime minister Narendra Modi’s visit to Russia which starts September 4, according to a report by The Hindu.

Sources told The Hindu that a memorandum of understanding on LNG imports will be signed, and announcements on new Indian investments in Russian oil fields will be made. These deals were firmed up during Indian oil and gas minister Dharmendra Pradhan’s visit to Moscow late last month, the newspaper added.

“The intent to develop greater ties in energy between India and Russia is going to be followed by actual action on the ground,” the newspaper quoted Indian foreign secretary Vijay Gokhale as saying. Gokhle said that India is actively seeking to “diversify oil and gas supplies beyond complete dependency in the Gulf.”

Russian Gazprom already supplies LNG to India’s Gail under a long-term contract. India received its first LNG cargo from Gazprom in June last year on LNG Kano under a long-term deal at Petronet’s Dahej terminal in the state of Gujarat. In January 2018, Gail and Gazprom said they had re-negotiated and amended their long-term LNG sale and purchase agreement (SPA), originally signed in the year 2012.

Last month, Russia’s Novatek said it is looking to supply LNG from its Arctic LNG-2 export project to India. The Arctic LNG-2 project will comprise three LNG trains with capacity of 6.6mn mt/yr each. The project is expected to become operational in 2022-2023.