India and China have signed an agreement to boost their production of liquefied natural gas (LNG) and cement and are seeking to accelerate production of both of these commodities.
The agreements, signed by the Indian Ministry of Petroleum and Natural Gas and the Chinese Ministry of Foreign Affairs on Tuesday, also set the stage for further cooperation in other fields, including the production of advanced chemical fertilizers and fuel cells, the Indian media reported.
India’s LNG imports from China are up to 20,000 tonnes annually, compared to about 2,000 tons from Russia.
The agreement also lays out a roadmap for joint development of Indian LNG terminals.
China and India, along with a host of other Asian countries, are seeking access to the lucrative Chinese market.
China has been importing liquefying natural gas from Russia for more than a decade.
China is also expanding its export capacity, particularly from the Middle East, while India has plans to expand its imports from Pakistan and Sri Lanka.
The Indian Prime Minister Narendra Modi on Monday signed an order for the liquefaction of natural gases and cement at two Indian ports, a move that could help boost the country’s natural gas exports, while China has sought to expand production of its liquefyment technologies.
The agreement also allows China to invest in India’s liqueflation plant at its Koyambedu port.
In addition, the two sides agreed to boost cooperation in areas like cement production, oil refining, and water processing.
The two sides will also launch joint research and development projects in India and the rest of Asia, as well as expand cooperation in the field of pharmaceuticals, food safety, and energy, the statement said.