Gazprom plans LNG venture in Kakinada

Top executives of Gazprom, Kakinada Seaports to meet this week

- Rituraj Baruah & Manas Pimpalkhare

Gazprom, a Russian state-owned energy giant facing US sanctions, is in talks to build a 5 million tonne LNG regasification terminal at Kakinada port on India's east coast, as part of plans to invest in Indian ports and gas infrastructure.

Executives of Kakinada Seaports Ltd, Gazprom, and representatives of the Russian Federation embassy in New Delhi are expected to meet this week to discuss the modalities of the proposed $600 million investment, four people said.

"Gazprom is looking to invest in port and LNG assets in India. Currently, it is in talks to set up an LNG terminal at Kakinada port," one of them said.

"There is global interest in India's maritime space. Among them, Russian entities including Gazprom have been actively scouting for maritime and port assets in India," added an Indian government official aware of Gazprom's talks with Kakinada Seaports. All four people spoke on the condition of anonymity.

Gazprom's port infra ambitions come in the backdrop of Indian port operators including Adani Group barring vessels sanctioned by the US, the UK, and the European Union from their ports. The sanctions are related to Russia's war with Ukraine.

Gazprom's India plans may not have a major impact on India-US relations as New Delhi appears keen on big investments from Russia, said Sankalp Gurjar, assistant professor of geopolitics and geoeconomics at Gokhale Institute of Politics and Economics. He pointed out that India has revived other partnerships with Russia recently, including defence acquisition plans.