Moscow: Gazprom is set to start increasing deliveries of liquefied natural gas to India starting from 2016-2018, a source close to the Russian gas export monopoly told Reuters on Thursday.
Earlier Gazprom said it signed a memorandum of understanding to supply three Indian customers with an additional 7.5 million tonnes of liquefied natural gas (LNG) per year.
The source said the LNG will come from Gazprom’s new projects, including Shtokman in the Barents Sea, increased capacity planned at its existing plant on the Pacific island of Sakhalin and volumes bought from third parties.
The source also said that Gazprom would soon secure similar memorandums with clients in Europe and North America.
The raft of memorandums underscores India’s efforts to secure power for its fast-growing economy, already Asia’s third largest.
Overseas deals are also being sought to help cushion against global price fluctuations and to secure energy supply for a country that relies on imports for two-thirds of its oil.
Gazprom said its Gazprom Marketing and Trading Singapore (GM&TS) was the agent in the three memorandums with GAIL, Gujarat State Petroleum Company (GSPC) and Petronet LNG Limited .
“GM&TS will provide LNG to its Indian partners from its current and projected Gazprom production, such as Sakhalin, and will be supplemented by its wider Russian and international supply portfolio,” Gazprom said in a statement.
With an economy growing by around 8 percent a year and gas seen as an attractive option versus carbon-heavy coal and oil, India’s demand could double by 2020, making it a promising market for Gazprom, which already sells to an Indian state firm.