H-Energy, Russia’s Novatek Form Joint Venture To Sell LNG In India

India's H-Energy Global Ltd. and Russia's Novatek on Wednesday signed a joint venture agreement to supply liquefied natural gas to India, the Russian media reported.

The document was signed on the sidelines of the Eastern Economic Forum, the official Tass news agency quoted Novatek as saying.

The H-Energy-Novatek deal was announced hours after Prime Minister Narendra Modi arrived in Russia on Wednesday for summit talks with President Vladimir Putin. Modi will also be the chief guest at the Eastern Economic Forum on Thursday.

According to the agreement, Novatek will invest in future LNG terminals in India and the joint venture to sell LNG and natural gas to India, Bangladesh and other markets, the report said. "India is one of the biggest and fast-growing LNG markets, and the country is going to become one of the main growth drivers of the global demand for natural gas in the future.”

The signed memorandum is "an important step towards entering the final consumer market of India, which is of great interest for Novatek considering our strategic plans to implement new LNG projects and boost LNG production volumes," said Leonid Mikhelson, chief executive officer of Novatek.

The fifth Eastern Economic Forum is being held in Russia's Vladivostok on Sept. 4-6.

Last week, while briefing reporters on PM Modi's Russia visit, Foreign Secretary Vijay Gokhale said expanding cooperation in the hydrocarbons sector will be a focus area during the prime minister’s trip to Vladivostok.

"The prime minister has said it on a number of ocassions that India needs to bring the relationship with Russia beyond civil nuclear and defence cooperation into other areas of the economy," Gokhale had said.

During PM Modi’s Russia visit, the two countries are expected to firm up a five-year roadmap, laying out possibilities of cooperation in the oil and gas sector, in terms of exploration and exploitation, and purchase.