Partnerships between businesses can add extraordinary value to both companies, and often more benefits than initially expected. That’s what Woodside Petroleum is hoping for with the company’s new partnership with Indian-based energy and industrial conglomerate Adani Enterprises.
Experts believe the move will open a new avenue for Woodside’s LNG market. On average India has imported around 13 million tonnes of LNG a year to their country, but mostly from Qatar, not Australia. And with predictions for LNG imports looking to climb to 15 million tonnes in 2015, India is making every effort to meet these rising energy demands with a gas, nuclear and coal variety.
The two companies shared that they plan to work together to both identify and develop “potential business arrangements and commercial initiatives.”
Peter Coleman, chief executive of Woodside, began courting the country last year by stepping up Woodside’s marketing efforts in India in 2014. The CEO was also a part of Prime Minister Tony Abbott’s high-level business delegation in September, giving him extra access to the country and their LGN plans.
Coleman and Adani chairman Cautam Adani signed a memorandum of understanding in Gujarat this weekend, in a ceremony that was attended by Australia’s trade and investment minister Andrew Robb. The MoU not only demonstrates Woodside’s commitment to India’s LNG market, but also a firming up of relations between the two companies. Coleman holps this move sets the stage for a strong partnership on technology transfer, potential LNG sales and investment opportunities.
"India is at the forefront of the LNG industry and committed to developing partnerships to support securing reliable long-term supplies of clean energy," Coleman shared.
India will need to firm up multiple partnerships for the coming energy demands, which, according to consultancy Wood Mackenzie, could reach an astounding 35 million tonnes a year by 2025. And although LNG import growth has been slower than many have expected, India’s domestic gas production has declined, opening doors for energy suppliers worldwide.
Information sourced from Brisbane Times.