https://sputniknews.in/20221215/india-purchasing-lng-from-russia-at-commercial-rates-oil-minister-109537.html
India Purchasing LNG From Russia at Commercial Rates: Oil Minister
India Purchasing LNG From Russia at Commercial Rates: Oil Minister
Sputnik India
Indian firms are looking for long-term LNG contracts with Russia, given that international prices have been setting record highs for the last 12 months. 15.12.2022, Sputnik India
2022-12-15T19:22+0530
2022-12-15T19:22+0530
2022-12-15T19:23+0530
indo-russian relations
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Unlike the case with crude oil, India is purchasing liquid natural gas (LNG) from Russia at the market rate, the country's oil minister Hardeep Singh Puri indicated on Thursday.Imports of LNG from Russia have previously been a small proportion of total LNG imports into India, the minister added. Since last year, however, India has been receiving direct LNG shipments from Russia. New Delhi has been receiving huge discounts on oil purchases since the beginning of this financial year ending March 2023.Industry sources told Sputnik that LNG imports under the long-term contract with Gazprom have not been resumed yet, and the current purchases are being done on the spot market.In April, German authorities took Gazprom Germania under temporary management, disrupting LNG supplies to India under a long-term contract.Another government official told Sputnik that talks are also happening at the diplomatic level between Russia and Germany to resume the supply of 2.85 million tons of LNG from the former Russian unit Gazprom Germania.The supply woes for India began after Russia stopped dealings with SEFE Marketing & Trading Ltd's parent Gazprom Germania, after the Germany's regulator seized control of the company in April. When signing the 20-year contract with GAIL, SEFE M&T was part of Gazprom Germania — a unit of Russia's Gazprom.India’s urea production is dependent on imported LNG, which accounts for 80-85% of the cost of production. Recently, the finance ministry sought parliamentary approval to raise the fertilizer subsidy bill for the next three months.
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India Purchasing LNG From Russia at Commercial Rates: Oil Minister
19:22 15.12.2022 (Updated: 19:23 15.12.2022) Indian firms are looking for long-term LNG contracts with Russia, given that international prices have been setting record highs for the last 12 months.
Unlike the case with crude oil, India is purchasing liquid natural gas (LNG) from Russia at the market rate, the country's oil minister Hardeep Singh Puri indicated on Thursday.
"LNG cargoes from Russia are priced as per commercial considerations on the basis of international prices, cost of freight, insurance, etc," Puri said in the parliament.
Imports of LNG from Russia have previously been a small proportion of total LNG imports into India, the minister added. Since last year, however, India has been receiving direct LNG shipments from Russia.
New Delhi has been receiving huge discounts on oil purchases since the beginning of this financial year ending March 2023.
Industry sources told Sputnik that LNG imports under the long-term contract with
Gazprom have not been resumed yet, and the current purchases are being done on the spot market.
“The issues related to the Gazprom have not been sorted out yet. Negotiations are underway,” an industry executive told Sputnik.
In April, German authorities took Gazprom Germania under temporary management, disrupting LNG supplies to India under a long-term contract.
Another government official told Sputnik that talks are also happening at the diplomatic level between Russia and Germany to resume the supply of 2.85 million tons of LNG from the former Russian unit Gazprom Germania.
The supply woes for India began after Russia stopped dealings with SEFE Marketing & Trading Ltd's parent Gazprom Germania, after the Germany's regulator seized control of the company in April. When signing the 20-year contract with GAIL, SEFE M&T was part of Gazprom Germania — a unit of Russia's Gazprom.
India’s
urea production is dependent on imported LNG, which accounts for 80-85% of the cost of production. Recently, the finance ministry sought parliamentary approval to raise the fertilizer subsidy bill for the next three months.
