India balances US energy ties with $25 billion Russian gas deal

India on Monday started receiving long-term gas supplies from Russia’s Gazprom, the world’s top publicly-listed natural gas company, under a $25-billion deal that indicates New Delhi’s quest for newer routes towards energy security and balancing ties with Washington and Moscow.

“Today will be remembered as a golden day for India’s energy security roadmap,” oil minister Dharmendra Pradhan said after receiving ‘LNG Kano’, the cryogenic ship carrying the first cargo of LNG (liquefied natural gas) under a 20-year deal with state- run GAIL + here on Monday.

Union Minister @dpradhanbjp today received "LNG Kano", the first-ever LNG cargo under the long-term contract between @gailindia & @GazpromEN of Russia at Dahej and termed it as 'golden day' in the India’s energy pursuit & a step towards transforming India into a gas-based economy pic.twitter.com/53mKHH1ACb

— CMO Gujarat (@CMOGuj) June 4, 2018

Recalling Russia’s extended contribution in developing India’s oil and gas sector, beginning with the discovery of Mumbai High field in the 1970s, Pradhan said the long-term gas supply establishes an energy bridge between the two countries as part of PM Modi and president Putin’s plan for forging closer strategic economic cooperation.

Pradhan’s statement underlines an effort to put balm on Moscow’s growing unease over the Modi government’s growing closeness to Washington, especially in areas of defence supplies and now energy. Indian refiners began importing small quantities of US crude last year. In April, GAIL received its first cargo of shale gas from mainland US.

The gas deals vindicate GAIL chairman B C Tripathi’s bold and forward-looking decision to tie up diverse sources such as the US and Russia with the aim of reducing India’s dependence on West Asian gas and secure supply security. Pradhan echoed this by saying gas imports from Russia will go a long way in mitigating the risks arising out of geo-political uncertainties.