A memorandum of understanding signed between Woodside and Adani is set to strengthen ties in the LNG sector
Australian energy major Woodside Petroleum Ltd (ticker: WPL) and India’s infrastructure conglomerate Adani Enterprises Ltd (ticker: ADANIENT) signed a memorandum of understanding (MOU) last week for cooperation in exploring opportunities in India’s oil and gas sector.
The MOU, signed on January 10, 2015, says the two companies will “jointly explore opportunities in sourcing liquefied natural gas (LNG), supply and purchase arrangements for India, LNG marketing, investment in upstream activities such as Oil & Gas Exploration, Production & Liquefaction Plants, knowledge sharing, training, join technology studies, technology studies, technology workshops and connecting local R&D institutions and universities with each other,” according to Adani’s press release.
Woodside CEO and Managing Director Peter Coleman said in his company’s press release, “India is an important emerging LNG market in which we see enormous supply potential as infrastructure is developed.”
The non-binding MOU was signed by Gautam Adani, Chairman of Adani Group, and Mr. Coleman in Gujarat, India, in a ceremony attended by Andrew Robb, Australia’s Minister of Trade and Investment.
According to the Energy Information Administration (EIA), India’s domestic production has not kept pace with demand in recent years, leading to higher levels of imports. The country was the world’s fourth-largest importer of both LNG and crude oil in 2013, and national oil companies are increasing investment on the exploration side to reduce the need for third-party goods. Such investments include “purchasing upstream stakes in overseas oil fields to increase supply security from imported crude oil,” says the EIA.
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