NEW DELHI: Indian companies such as GAIL, Indian Oil Corporation (IOC), and Bharat Petroleum Corporation (BPCL) are in active discussions with US companies for sourcing liquefied natural gas (LNG). Petroleum Secretary Pankaj Jain, speaking to the media on Monday, mentioned that Indian oil and gas companies would consider buying stakes in US LNG projects if the deals are attractive.
“Indian companies are looking at buying LNG from around the world, particularly from the US,” said Pankaj. India, the fourth-largest LNG importer in the world, aims to increase the share of natural gas in its energy mix to 15% by 2030, up from over 6% at present. Currently, GAIL has term LNG contracts for 5.8 million tonne of US LNG. The bulk of India’s long-term LNG volumes come from Qatar.
Petroleum minister Hardeep Singh Puri, speaking at a press conference, said energy could feature in the meeting between Prime Minister Narendra Modi and US President Donald Trump. “I would be surprised if sourcing of energy (by India from the US) doesn’t feature in the talks (during PM Modi’s upcoming US visit)… With President Trump saying he wants to see global (energy) prices come down… for countries like India, that is a very positive development,” said Puri.
After taking charge last month, Trump lifted the Joe Biden administration’s ban on export permits for new US LNG projects, which could further solidify Washington’s position as the world’s largest LNG exporter. Currently, GAIL has term LNG contracts totalling 5.8 million tonne of US LNG.