Dahej: Russia has also started the supply of LNG to India a few weeks after the United States started the LNG supply. The first ship carrying LNG from Russia will dock at the Dahej port in Gujarat on Monday. This LNG supply from Russia is very important for India from the fuel security point of view. This transaction attaints further importance as India is buying LNG from Russia despite the sanctions imposed by United States.
Prime Minister Narendra Modi had met Russian President, Vladimir Putin only two weeks ago in Sochi. The United States had announced to impose sanctions on any country dealing with Russia. This increased the importance of the discussions between Prime Minister Modi and the Russian President. This supply from Russia is happening subsequent to these discussions. More importantly, United States also had started supply of LNG to India.
The first ship carrying LNG from United States had docked in the Dabhol port in Maharashtra, two months ago. As per the agreement with Cheniere Energy from the US, India will be supplied 3.5 million tonnes of LNG per year. Within weeks of the United States supply, the Russian supply has also started and it is apparent that there will be competition between the United States and Russia to capture the Indian market.
‘GAIL’ from India and ‘GAZPROM’ from Russia have signed an LNG supply agreement in 2012. But the negotiations were on about the price of LNG. The negotiations resumed again in January this year. As these negotiations were successful, this supply of LNG from Russia to India has started.
As per this agreement, GAZPROM will supply 2.5 million tonnes of LNG per year to India. But the LNG supply will be gradually increased every year in order to reach 2.5 million per year in the 4th year. For the current year, the figure of LNG supplied by Russia will be 0.5 million tonnes.
The Russian ship carrying LNG will reach Dahej port in Gujarat on Monday. Oil and natural gas minister, Dharmendra Pradhan will be present there to welcome the Russian ship carrying LNG docks at the Petronet LNG Limited terminal.
India was majorly dependent on the Gulf countries for its oil requirements. India is forced to consider other options due to the instability in the Gulf region. There is an effort to increase the use of LNG instead of petrol and diesel. The demand for LNG has increased in India and to ensure continuous supply, India has signed some important agreements. These include the agreements with the United States and Russia. India has signed similar agreements with Saudi Arabia and Qatar. As per the agreement signed in 2015, Qatar will be supplying 7.5 million tonnes of LNG to India, per year. It is said that this will result in a saving of INR 80 billion to India.