:: Technical --- ID :: 18293
Russian Far Eastern regions express readiness for Indian investments in oil and gas projects
Russian Far Eastern regions express readiness for Indian investments in oil and gas projects

Russian Far Eastern regions express readiness for Indian investments in oil and gas projects

Three regions of the Far East - Yakutia, Sakhalin Oblast and Priamurye - have expressed interest in Indian investments in oil and gas projects.

Participants of a session this week, organised with the participation of Indian Embassy in Moscow, the Ministry of the Russian Federation for the Development of the Far East and the Arctic, the Far East Agency for Investment and Export Support, the Corporation for the Development of the Far East and the Arctic discussed these issues and the prospects for the development of Russian-Indian cooperation in the field of petrochemicals.

The General Director of the Corporation for the Development of the Far East and the Arctic Eduard Cherkin, Indian Ambassador Bala Venkatesh Varma, Secretary, Ministry of Oil and Natural Gas from India Tarun Kapoor, directors of ONGC Videsh Limited, Indian Oil Corporation, GAIL, representatives of three Far Eastern regions - the Republic of Sakha (Yakutia), Sakhalin and Amur regions – attended the event, officials informed.

Cherkin noted India is one of Russia's strategic partners in the Far East. “Indian companies operate in the Far Eastern regions, they have already invested heavily in the energy, natural resources and diamond cutting industries,” he pointed out.

The Corporation for the Development of the Far East and the Arctic is one of the institutions for the development of Russian-Indian business relations. “The corporation provides a range of services for investors, including regulation, industry analysis, consulting on business plans, go-to-market support, site identification and land infrastructure development, tax and legal support. We also provide investors with human resources, organise professional development and retraining programs, attract foreign labour and accompany projects at all stages," Cherkin noted.

Investors implementing projects in the Russian Far East and in the Arctic zone of the Russian Federation can take advantage of the possibilities of preferential regimes.

According to Cherkin, energy is traditionally a key area of cooperation between the two countries, including the supply of hydrocarbons from the Far East to India, geological exploration, production and processing of oil and other energy resources. “We are confident that we have the potential for further expansion of investment cooperation in this area.”

Anastasia Nabatchikova, Managing Director for Projects in the Field of Petrochemical and Gas Chemistry, ANO API, noted that of the four main mineral resource centers formed in the country, two are located in the Far Eastern Federal District - in Yakutia and the Sakhalin Region. It is planned to develop the processing and transport industries in other regions of the Far Eastern Federal District. Thus, in the Kamchatka Territory, it is planned to implement projects for the construction of LNG terminals. A gas processing plant is under construction in the Amur Region.

There is an increase in production capacities in the macroregion for the efficient use, storage and transportation of helium. Another project in the energy sector is related to the formation of a hydrogen cluster on Sakhalin. According to Anastasia Nabatchikova, the transition to "green energy" will contribute to the development of the LNG market until at least 204.

The participants noted that the Russian Far East, due to its geographical position, is a promising region for the implementation of projects for the production of liquefied natural gas (LNG). Today India is the fourth largest importer of liquefied natural gas in the world. About half of the state's gas demand is met by LNG. India's LNG imports are projected to quadruple by 2040 (61% of the country's total gas imports).

Varma, pointed out, new impetus to the development of Russian-Indian relations was given by the 2019 Eastern Economic Forum and the visit of Indian Prime Minister Narendra Modi to Vladivostok. In particular, an agreement was signed on the development of a sea route between the ports of Vladivostok and Chennai. The Indian government has decided to provide a loan in the amount of one billion dollars to Indian companies willing to implement projects in various areas in the Russian Far East.

According to Kapoor many Indian companies are ready to cooperate with Russian state and private enterprises. The Far East has a special place in this matter. The Indian government is interested in mutual investment, especially in the energy sector. The arrival of the management of a number of large Indian companies in Moscow and the opening of an office of the Indian energy center in the Russian capital confirms this interest, according to Kapoor.

Kapoor explained that this center will make it possible to establish relations between Russian and Indian businesses more quickly.

Cooperation in the field of production and delivery of natural gas from the Russian Federation was discussed. It was noted that India consumes eight times more gas than it produces. The Indian side noted that it sees the prospect of cooperation in the gas sector with Sakhalin, Yakutia, as well as with Kamchatka, Khabarovsk Territory and Amur Region.

India suggested that Russian business consider the possibility of participating in geological exploration and mining projects in India. Such projects are planned onshore and offshore.

Director of the Department of International Cooperation of the Ministry of Oil and Natural Gas of India, Esha Srivastava, Managing Director & CEO of ONGC Videsh Limited Alok Kumar Gupta and GAIL representative spoke about the opportunities for Russian companies to invest in the energy sector of India and Indian Oil Corporation.

The Economic Times 03-03-2021