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India, Russia govts likely to sign MoU for coking coal

Friday, 08 May 2020
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The governments of India and Russia are in talks to expand their energy partnership by increasing crude oil imports from Russia.

The two governments will possibly sign a memorandum of understanding (MoU) to import coking coal to meet requirements of the Indian steel industry.

The governments also reviewed ongoing projects and plans including participation of Indian companies such as the Indian Oil Corporation (IOC) in Russia’s state-owned Rosneft’s Vostok oil project in the Russian Arctic, Novatek’s deal to supply of liquefied natural gas (LNG) to H-Energy, cooperation between GAIL (India) and Gazprom, joint projects with Gazpromneft, and supply of crude oil by Rosneft to Indian Oil.

The Indian government is keen to explore a new sea route to source crude oil and LNG from the Russian Arctic. The route has the potential to cut cost and time for transporting LNG from Russia to India.

The revival of Vladivostok-Chennai shipping line will also facilitate sourcing of coking coal from the Russian Far East region that stretches from Siberia to the Pacific Ocean and is estimated to have 10-14 billion tonne of oil and 14-15 trillion cu mtr of gas.

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