According to Leonid Mikhelson, the CEO of Novatek, the largest producer of liquefied natural gas in Russia, the company has been in talks with GAIL and other Indian firms about the supply of LNG and may explore accepting payments in rupees.
Additionally, he claimed that European consumers, who have sanctioned Russia because of its actions in the Ukraine, were interested in Russian LNG, which is not subject to restrictions, and that no buyers with long-term contracts wished to end them.
According to Refinitiv Eikon statistics released on Tuesday, Russia provided Europe with over 17 million tonnes of LNG in 2018, an increase of about 20% over 2021 levels. This helped to lessen the impact of a sharp fall in Russian pipeline gas exports.
In reaction to the reduction in pipeline gas supplies from Russia brought on by a serious political issue involving Ukraine, Europe has boosted its imports of seaborne LNG, or gas carried in liquid form at minus 160 degrees Celsius.
Three industry insiders claimed last week that Novatek was nearing an agreement to provide gas to GAIL as it looks for markets outside of Europe.
Mikhelson claimed that Novatek was negotiating a long-term deal for the Indian market with a number of Indian businesses.
According to Refinitiv Eikon statistics released on Tuesday, Russia provided Europe with over 17 million tonnes of LNG in 2018, an increase of about 20% over 2021 levels. This helped to lessen the impact of a sharp fall in Russian pipeline gas exports.
When asked if Indian rupees will be taken into consideration as a form of payment, he replied that they would.
Additionally, he stated that due to delays in maintenance, LNG production at the Yamal LNG plant would be 5% lower this year than in 2022.
