India Declines Russian LNG From Sanctioned Projects, Signals Caution On Energy Imports: Report

New Delhi, May 12 (KNN) India has declined Russia’s offer to supply liquefied natural gas (LNG) from sanctioned projects, according to a Reuters report, signalling a cautious stance on energy procurement amid global geopolitical tensions. 

The move comes even as China continues to import both sanctioned and non-sanctioned Russian LNG cargoes.

The report, citing sources familiar with the matter, said India conveyed during recent discussions that it would not procure LNG from projects under sanctions, including Portovaya LNG and Arctic LNG 2.

Talks Held During Russian Delegation Visit

The issue was discussed during a visit by Russian Deputy Energy Minister Pavel Sorokin on April 30. He held meetings with Union Petroleum and Natural Gas Minister Hardeep Singh Puri and other officials as part of ongoing energy negotiations, the report highlighted. Further discussions are expected during his planned visit in June.

Shipment Disrupted Amid Stalled Talks

India’s position has already impacted at least one LNG shipment. A cargo from the sanctioned Portovaya LNG plant was unable to discharge after negotiations with Indian buyers stalled. 

The LNG tanker Kunpeng, which had earlier listed Dahej LNG terminal in Gujarat as its destination, is now near Singaporean waters and no longer indicating a delivery point.

Higher Monitoring Risks for LNG

While India has significantly increased imports of discounted Russian crude oil since the Ukraine conflict, LNG transactions pose greater compliance risks. Unlike crude shipments, LNG cargoes are easier to track through satellite systems, making it more difficult to bypass sanctions.

The United States has tightened restrictions on Russian LNG projects, including Portovaya LNG and Arctic LNG 2, as part of its response to the Ukraine war.

India Open to Non-Sanctioned Supplies

The report noted that India remains open to purchasing authorised Russian LNG cargoes. However, much of the non-sanctioned supply is tied up in long-term contracts with European buyers, limiting availability.

Energy Security Pressures Persist

The development comes amid rising concerns over energy security due to disruptions in West Asia. A significant share of India’s gas and crude imports transit through the strategically important Strait of Hormuz, making supply chains vulnerable to geopolitical instability.

Russia is also seeking broader long-term agreements with India covering LNG and fertilisers, including potash and urea.

(KNN Bureau)