India, Russia keen on closer energy ties

Jun 28, 2006, 17:12 GMT

New Delhi, June 28 (IANS) Deputy Chairman of Russian Federation Alexander Zhukov Wednesday expressed keenness to enhance energy ties with India and indicated concrete arrangements would be worked out during Prime Minister Manmohan Singh's visit to Russia in July.

The prime minister is scheduled to visit St Petersburg in July for the G-8 summit being hosted by Russia.

During a meeting here with Petroleum Minister Murli Deora, Zhokov said besides working together in Sakhalin-I and in oil and gas exploration blocks in India, leading Russian gas company Gazprom is keen to participate in the proposed Iran-Pakistan-India gas pipeline project.

He welcomed the interest shown by Indian companies to participate in more projects in Russia and 'expressed hope that specific arrangements would be worked out during the forthcoming visit of the Indian Prime Minister to Russia,' the petroleum ministry said in a statement.

Emphasising the need for further enhancing cooperation in the oil and gas sector, both sides agreed to take forward the cordial and fruitful relations in general and in the hydrocarbon sector in particular.

Deora stated that Indian companies led by ONGC Videsh Ltd (OVL) are eyeing participation in more energy ventures in Russia including the Sakhalin-III exploration project given the good experience of working together in the Sakhalin-I project, which commenced oil and gas production last year.

The petroleum minister also discussed the possibility of transporting liquefied natural gas (LNG) from Sakhalin-I to India.

OVL, which holds 20 percent participating interest in Sakhalin-I field and has the option of getting another 20 percent oil and gas share of Russia's state-owned Rosenet, has prepared a feasibility study for export of LNG.

© 2006 Indo-Asian News Service