India and Brazil are expected to sign at least 11 agreements during the visit of President Jair Bolsonaro later this week, including a Strategic Partnership Action Plan.
The Indian cabinet under the chairmanship of Prime Minister Narendra Modi has also approved the signing of a Memorandum of Understanding between India and Brazil for cooperation in the field of oil and natural gas.
“Both sides will work towards establishing cooperation in the exploration and production initiatives in Brazil and India, research & development in this sector, explore collaboration in Liquefied Natural Gas projects in Brazil, India and third countries,” a government statement issued on Wednesday reads.
The two countries will also sign agreements to increase defence cooperation, and technology sharing.
Investments in Brazil LNG sector have been witnessing major changes of late with more and more participation of private firms in this domain.
With the signing of this agreement, Indian energy firms may find major opportunities in the Latin American country as Brazil has plans to set up at least 23 new LNG terminals with most of them currently either at the licensing phase or the subject of initial studies.
According to the data provided by India's Ministry of Commerce, India's investments in Brazil were around $6 billion and Brazilian investments in India were estimated at $1 billion in 2018. The latter has been taking energy diplomacy to the next level to counter China’s massive investment in Asia over the past few years under its Belt and Road Initiatives.
India’s state-run Petronet LNG also plans to invest over $2.5 billion in Sri Lanka, Bangladesh, Myanmar and Mauritius. India in collaboration with Japan had signed a tripartite agreement to build an LNG import terminal in Sri Lanka.
Bilateral relations between the two countries, which are both members of BRICS, IBSA and the G-20, were elevated to a Strategic Partnership in 2006.