India receives its cheapest LNG from Russia’s Gazprom

The Russian natural gas supplier, Gazprom, has launched supplies of liquefied natural gas (LNG) to India.

On 4 June, India received its cheapest ever LNG through a long-term deal, at the cost of $7 per million British thermal unit (mmBtu).

The nation’s 20-year-long deal will see the fuel supplied at $1.5 per mmBtu lower than India’s supply deal with Qatar.

Russia’s prices are also approximately $1.-1.5 cheaper per mmBtu than LNG from Australia and the US.

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India’s Minster of Petroleum & Natural Gas and Skill Development & Entrepreneurship, Dharmendra Pradhan, travelled to Dahej to see the shipment arrive.

Pradham dubbed the event a “Golden Day” for the nation and its energy future and explained how India created the deal.

“First we renegotiated price of LNG from Qatar, then reworked Australian supplied and now gas from Russia under renegotiated terms has started to flow,” commented Pradhan.

“Four years ago, we were importing LNG from only Qatar. Today we are getting LNG from Australia, US and now Russia.”

The deal is expected to see India receive $25bn worth of LNG from Russia over the 20-year period.