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MUMBAI: India’s largest gas transmitter GAIL is open to buying Russian oil and gas assets shunned by Western companies after Moscow’s invasion of Ukraine if the deal made commercial sense, the company’s chairman, Manoj Jain, said on Friday.
European countries and the US have imposed heavy sanctions on Russia since Moscow sent troops into Ukraine on Feb. 24. and the EU has proposed its toughest package of punishments yet, including a ban on crude oil in 6 months.
India has tried to balance its ties with Russia and the West but unlike other members of the Quad countries — the US, Japan and Australia — it has not imposed sanctions on Russia.
“Why would anyone say no (to Russian assets) if it makes commercial sense,” Jain told reporters at post-earnings press conference.
GAIL is considering buying gas from challenging local fields to address surging local demand for natural gas, including striking long-term liquefied natural gas import deals with global companies.
Jain said GAIL is scouting for a 10-year deal to annually import 1 million tons of LNG.
India to import coal
State-run Coal India, the world’s largest coal miner, will import the fuel for use by utilities, a Power Ministry letter seen by Reuters showed on Saturday, as shortages raise concerns about renewed power outages.
It would be the first time since 2015 that Coal India has imported the fuel, highlighting efforts by state and federal officials to stock up to avoid a repeat of April, when India faced its worst power cuts in more than six years.
“Coal India would import coal for blending on government-to-government basis and supply ... to thermal power plants of state generators and independent power producers,” the federal Power Ministry said in the letter dated May 28.
The letter was sent to all utilities, top federal and state energy officials including the federal coal secretary and the chairman of Coal India.
India is expected to face a wider coal shortage during the third quarter of 2022 due to expectations of higher electricity demand, stoking fears of widespread power outages.
(With input from Reuters)