paradoxically, because of the pandemic coronavirus, which has not bypassed India side, Russia has a chance to increase its presence here. Because of falling demand and energy prices fluctuate, many established areas of oil and gas supplies. Consumers had the opportunity to choose the most favorable conditions. For India with its very booming petroleum industry and the rate of replacement of coal generation gas main priority is price. And Russia has something to offer.
“Traditionally, India is closing its needs in oil and gas imports due to supplies from the Middle East,” – said the expert on the stock market “BCS” albert of Koroev. He explained that this way is cheaper and more accessible, than to carry oil and gas by sea from Russia. Two-thirds of oil and half of imports of liquefied natural gas (LNG) to India pass through the Strait of Hormuz. Nevertheless, India is trying to diversify its supplies, and its capital is already involved in Russian projects, and in early 2020, “Rosneft” and the Indian Oil has signed a contract to supply to India via the port of Novorossiysk up to 2 million tons of oil.
This, of course, a drop in the bucket for a country that consumes a day of 4.34 million barrels of oil (about 600 thousand tons). But when you consider that all Russian exports of oil and oil products to India in 2019 amounted to 5.5 million tonnes, the increase in supply by almost 40% quite a good result.
There is also the nuance associated with the qualitative characteristics of Russian oil. In Asia-Pacific countries Russia until some time has traditionally exported oil brand ESPO (ESPO). As explained by the senior analyst on oil and gas sector of the energy Centre of Moscow school of management SKOLKOVO Catherine Grushovenko, Indian refineries are placing greater demand for heavy and sour crude oil, while ESPO lighter and more expensive grade of oil, which are difficult for him to compete in the Indian market.
But already this year, Russia began to set records for deliveries in the Asia-Pacific sulfur oil Urals, which had previously been intended mainly for European consumers. And this sort of General price and quality requirements of the Indian refinery.
a Similar situation with export of gas. The country is cut off from major gas pipelines and forced to consume CNG. The gas pipeline project from Iran through Pakistan to India has been discussed for 25 years, but its implementation is hampered by political differences between the parties. Russia began to export LNG to India in 2018. Last year, nearly 24 million tonnes of LNG procured by India, the volume of shipments from our country amounted to 210 thousand tons. But now the gas market is rampant crisis. In the LNG sector as it affects Australia and the US is stronger than Russian manufacturers. And at least a portion of their share of indie��market, Russia can claim.
