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India’s GAIL considers buying

Russian assets

IMPORTS THE chairman and managing director of GAIL The company is currently looking to line up
(India) said that the state-owned company a 10-year contract that would enable it to import
would be open to purchasing Russian oil and gas 1mn tonnes per year (tpy) of LNG, Jain said. The
assets despite the fact that numerous companies long-term deal would enable GAIL to lock in
are avoiding doing business with Moscow since prices against a volatile global LNG market that
its invasion of Ukraine in late February. has fluctuated considerably in recent years.
“Why would anyone say no [to Russian “The main consideration of buying LNG will
assets] if it makes commercial sense,” Manoj Jain be competitive prices from anywhere, including
said during a press conference in New Delhi after Russia,” Jain said, adding that GAIL’s imports of
the company announced an increase in quarterly natural gas could rise by up to 6% during the cur-
profits of 39%. rent fiscal year, which ends in March 2023. “We
GAIL is one of several Indian companies aren’t looking for short-term contracts, as they
that have engaged in talks with Shell for a 27.5% are costlier,” he said.
stake in the Sakhalin-2 LNG project in Russia’s A current long-term contract with Gazprom
Far East. ONGC Videsh Ltd (OVL) is also tak- Marketing & Trading Singapore covers deliv-
ing part in the talks. Despite international sanc- ery of 2.5mn tonnes of LNG during 2022 and
tions put in place against Russia, and the move 2.85mn tonnes in 2023.
by many Western energy companies to end Meanwhile, India is clearly taking advantage
their partnerships in Russia, India has refused to of discounted Russian crude. The country has
impose sanctions, even though it belongs to the imported 34mn barrels of Russian oil since Feb-
US, Japan, Australia Quad group, and has taken ruary 24, according to a report in Reuters citing
advantage of purchasing Russian crude oil at Refinitiv Eikon data. India bought more than
highly discounted prices. 24mn barrels during the month of May, accord-
GAIL is India’s largest gas transmission com- ing to the data, compared with 7.2mn barrels
pany, with a cross-country network and five gas in April and 3mn barrels in March. Due to the
processing facilities. The company is looking to crude import bill, total Indian imports from
increase gas purchases from local producers and Russia between February 24 and May 26 rose to
also to import more LNG from foreign firms. A $6.4bn against $1.99bn for the same period in
stake in Sakhalin-2 LNG could ensure long-term 2021, the report said. ™
supplies to India, where gas demand is growing.

Week 22 03•June•2022 www. NEWSBASE .com P7