Page 7 - AsianOil Week 22 2022

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GAIL is one of several
Indian companies that
have engaged in talks
with Shell for a 27.5%
stake in the Sakhalin-2
oil and LNG project in
Russia’s Far East

India’s GAIL considers buying

Russian assets as oil imports surge

INVESTMENT THE chairman and managing director of GAIL long-term supplies to India, where gas demand
(India), Manoj Jain, has said that the state-owned is growing.
company would be open to purchasing Russian The company is currently seeking to sign a
oil and gas assets despite the fact that numerous 10-year contract that would enable it to import
companies are avoiding doing business with 1mn tonnes per year (tpy) of LNG, Jain said. The
Moscow since its invasion of Ukraine in late long-term deal would enable GAIL to lock in
February. prices against a volatile global LNG market that
“Why would anyone say no [to Russian has fluctuated considerably in recent years.
assets] if it makes commercial sense?” Jain asked “The main consideration of buying LNG will The company is
during a press conference in New Delhi. His be competitive prices from anywhere, including
comments came after the company announced Russia,” Jain said. He added that GAIL’s imports currently seeking
an increase in quarterly profits of 39%. of natural gas could rise by up to 6% during the
GAIL is one of several Indian compa- current fiscal year, which ends in March 2023. to sign a 10-year
nies that have engaged in talks with Shell for “We aren’t looking for short-term contracts, as
a 27.5% stake in the Sakhalin-2 oil and LNG they are costlier,” he said. contract that
project in Russia’s Far East. ONGC Videsh Ltd A current long-term contract with Gazprom would enable it
(OVL) is also taking part in the talks. Despite Marketing & Trading Singapore covers deliv-
international sanctions put in place against ery of 2.5mn tonnes of LNG during 2022 and to import 1mn
Russia, and moves by many Western energy 2.85mn tonnes in 2023.
companies to end their partnerships in Russia, Meanwhile, India is clearly taking advan- tonnes per year
India has refused to impose sanctions – even tage of discounted Russian crude. The country
though it belongs to the Quad group along has imported 34mn barrels of Russian oil since (tpy) of LNG.
with US, Japan and Australia – and has taken February 24, according to a Reuters report cit-
advantage of purchasing Russian crude oil at ing 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 in
pany, with a cross-country network and five gas April and 3mn barrels in March. Owing to the
processing facilities. The company is seeking 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. $6.4bn against $1.99bn for the same period in
A stake in Sakhalin-2 LNG could help ensure 2021, the report said.™

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