Indian Oil Companies Seek U.S. LNG Amid Lifting of Export Ban
Indian oil companies are actively pursuing the acquisition of U.S. liquefied natural gas (LNG), boosted by the recent lifting of export permit restrictions for new LNG projects by the Trump administration.
According to Oil Secretary Pankaj Jain, India, currently the fourth largest global LNG importer, aims to increase the proportion of gas in its energy portfolio to 15% by 2030, from the current 6.2%.
Indian companies, including GAIL (India) Ltd, Indian Oil Corp, and Bharat Petroleum Corp, are actively engaging with U.S. companies to secure additional LNG supplies.
During the India Energy Week conference, Indian companies will explore gas sourcing options with U.S. LNG suppliers. Jain indicated that they would consider equity investments in U.S. LNG projects if the terms are favorable.
GAIL Chairman Sandeep Kumar Gupta has confirmed the company's renewed interest in acquiring a stake in a U.S. LNG plant or securing a long-term LNG supply agreement. GAIL currently imports 5.8 million tons of U.S. LNG annually under existing contracts with Berkshire Hathaway Energy and Cheniere Energy.
India's LNG imports are predominantly sourced from Qatar, with pricing linked to crude oil. Jain emphasized the need to diversify India's gas sourcing portfolio by incorporating both U.S. Henry Hub and crude oil-linked pricing mechanisms.
The strategic importance of U.S. LNG for India lies in its potential to reduce energy imports from crude oil, which is sourced from multiple suppliers.
Oil Minister Hardeep Singh Puri has indicated that energy imports from the U.S. will be discussed during the upcoming meeting between Prime Minister Narendra Modi and President Donald Trump. Several Asian nations, including Japan and Taiwan, have expressed interest in purchasing U.S. LNG, citing both trade deficit reduction and diversification of gas supplies.