Shell in talks with Indian consortium to sell Russian LNG plant stake: Report – Times of India

LONDON: Shell is in talks with a consortium of power firms in India to promote its stake in a significant liquefied pure fuel (LNG) plant in Russia, three sources advised Reuters, highlighting India’s willingness to step into the area left by western firms following Moscow’s invasion of Ukraine.
The world’s third-largest oil importer and shopper has already stepped up purchases of Russian provides for the reason that battle started in February, benefiting from huge reductions at a time when international oil costs have surged.
The sources stated Shell has not too long ago entered into talks with a bunch of Indian firms, together with ONGC Videsh and Gail, over its 27.5% stake within the Sakhalin-2 LNG plant on Russia’s jap flank.
Shell declined to remark. ONGC, Gail and different state-run firms didn’t reply to Reuters’ request for remark.

The talks observe the British firm’s plans to exit all its Russian operations, amid an exodus of Western firms from the nation in response to sanctions over the Ukraine battle. India has not explicitly condemned Moscow’s actions there.
India has snapped up low cost Russian oil, taking its share of Russian oil exports to round 10% from zero for the reason that begin of this 12 months, based on the Worldwide Vitality Company.
The federal government has additionally requested state-run power firms to look into shopping for Russian belongings from European oil majors together with BP, Reuters reported final month.
India has shrugged off criticism from the West and defended its Russian power purchases, saying they characterize a fraction of the nation’s general wants and a sudden halt to imports would push up costs for shoppers.
India’s LPG plans
Shell can also be asking the Indian group for separate bids for long-term offers it has with Sakhalin-2 to provide the consortium with LNG cargoes and crude oil, two of the sources stated.
India doesn’t at the moment buy a lot LNG from Russia however goals to extend sharply its fuel consumption over the approaching many years.

It was unclear if the talks between Shell and the Indian consortium will result in a deal, whose worth stays unclear after Shell took a writedown on its Russian belongings.
The world’s largest liquefied pure fuel dealer wrote down $3.9 billion on Russian belongings after its determination to go away.
Any sale settlement would additionally require Moscow’s approval, the sources stated.
Shell is at the moment not in talks with different firms, together with Chinese language power teams, on promoting the Sakhalin-2 stake, one of many sources stated.

Sakhalin-2 is managed and operated by Russian fuel firm Gazprom. Different stakeholders within the challenge embody Japan’s Mitsui & Co and Mitsubishi Corp.
Shell earlier this month agreed to promote its Russian retail and lubricants companies to Lukoil.
Moscow calls its Ukraine invasion a “particular navy operation” to rid the nation of fascists, an assertion Kyiv and its Western allies say is a baseless pretext for an unprovoked warfare.

Leave a Comment