A consortium led by Indian group ONGC has bid for a stake in Novatek's liquefied natural gas project in the Russian Arctic, a Novatek spokesman said Monday.
"We received a bid from a consortium of ONGC, Petronet and GAIL for a stake in Yamal LNG," he said.
The Hindustan Times reported that the consortium was willing to commit as much as $3.4 billion for a 15 percent stake.
Analysts said participation of Indian companies in the project was a positive development for Novatek, Russia's second-largest natural gas producer, which could get access to the LNG market in India through a deal.
A fifth of the project has already been assigned to French company Total.
"[India] could see LNG demand rise to 50 million tons by 2020 [Wood Mackenzie estimates], while direct access to the market could allow for the employment of swap schemes with the traditional suppliers of LNG to Asia," Alfa Bank said in a note.
Yamal LNG was slated to start production of up to 16 million tons of frozen gas a year in 2015-17.
Gazprom and a consortium of Japanese companies have firmed plans to invest $7 billion to build an LNG plant near the Pacific port of Vladivostok, a source in Gazprom said Thursday. The plant will double Gazprom's annual production of LNG to 20 million tons after it becomes operational in 2016.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
