Indian Oil Companies in Talks to Buy U.S. LNG to Boost Energy Supply
Indian oil firms are negotiating U.S. LNG deals to secure long-term energy supply and reduce dependence on a single source. Talks are underway this week.
Indian oil companies are in discussions with U.S. suppliers to purchase more liquefied natural gas (LNG), following a decision by the U.S. government to ease export restrictions on new LNG projects. Oil Secretary Pankaj Jain confirmed this development on Monday.
India, the world’s fourth-largest LNG importer, plans to increase the share of natural gas in its energy mix from 6.2% to 15% by 2030. Companies like GAIL (India) Ltd, Indian Oil Corp, and Bharat Petroleum Corp are exploring new LNG deals to meet this growing demand.
Why is India Interested in U.S. LNG?
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Energy Security & Diversification – India wants to reduce its reliance on a single supplier and balance its imports with both U.S. Henry Hub-linked and crude oil-linked LNG prices.
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Attractive Investment Opportunities – Indian companies are open to buying stakes in U.S. LNG projects if the deals are favorable.
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Growing Domestic Demand – As India transitions to cleaner energy sources, the need for reliable LNG supplies is increasing.
Ongoing Negotiations
The discussions between Indian and U.S. LNG suppliers will take place during the India Energy Week conference. Jain mentioned that India is particularly interested in securing cost-effective and long-term LNG contracts.
Meanwhile, GAIL is looking to revive plans to invest in a U.S. LNG facility or finalize a new long-term LNG deal. Currently, GAIL imports 5.8 million tons of LNG annually from the U.S., sourced from Berkshire Hathaway Energy’s Cove Point plant and Cheniere Energy’s Sabine Pass facility in Louisiana.
India-U.S. Energy Ties Strengthen
Indian Oil Minister Hardeep Singh Puri noted that energy trade will be a key discussion point when Prime Minister Narendra Modi meets U.S. President Donald Trump later this week.
Apart from India, several Asian nations—including Japan and Taiwan—are also looking to buy U.S. LNG. Some see it as a way to strengthen their energy security, while others aim to improve trade relations amid ongoing tariff concerns.
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