India's H-Energy, Novatek Ink LNG Pact

India's H-Energy Global signed an agreement to buy liquefied natural gas (LNG) from Russian gas producer Novatek on a long-term contract as it looks to meeting energy needs of Asia's third-largest economy.

The MOU envisages cooperation in LNG supplies to India on a long-term basis, joint investment in future LNG terminals of H-Energy and LNG projects of Novatek, as well as establishing a joint venture to market LNG and natural gas from Novatek’s portfolio to end-customers in India, Bangladesh and other markets.

“India is one of the largest and fastest growing LNG markets, and will be one of the main sources of future growth in global demand for natural gas,” noted Novatek’s Chairman of the Management Board Leonid Mikhelson.

“The Memorandum of Understanding is an important step towards entering the end customer market in India, which is of great interest to Novatek taking into account our strategic plans to implement new LNG projects and significantly increase our LNG production volumes,” he added.

Darshan Hiranandani, CEO of H-Energy said “H-Energy is excited to partner with Novatek in Arctic LNG 2, to participate in and bring supplies to the downstream customers in India and Bangladesh through its terminals in Jaigarh, Kakinada, Haldia and its two pipelines Jaigarh to Mangalore and Kannai Chatta to Shrirampur ensuring safe, reliable and economic supply chain from gas field to burner tip.”