the story So Far: India committed to purchase more oil and natural gas from the US when Prime Minister Narendra Modi met US President Donald Trump in February amid tariff hazards in Washington. Foreign Secretary Vikram Misri said that India’s energy purchase from the US could increase from last year’s $ 15 billion to $ 25 billion in the near future. A Roots The report showed that the US exported about 3,57,000 barrels (BPD) per day to India in February, compared to the export of about 2,21,000 BPD last year.
What has India agreed?
India is the third largest oil importer and consumer in the world. For a country that depends on more than 85% of its crude oil requirements, any step is important to secure hydrocarbon supply. The country has promised to increase the purchase of oil and gas from the US, which in the next five years will increase energy relations in obtaining $ 500 billion to the ambitious double of bilateral trade, and will also help to an extent. Currently, bilateral trade is in India’s favor. Statistics from the office of the Office of the United States trade representative show that the goods trade deficit with India in 2024 was $ 45.7 billion, which is an increase of 5.4% from 2023. S&P Global Commodity Insights Gauri Johar at Executive Director (Energy Infection and Cleantech consultation) said that more oil and gas would be added to the purchase of more oil and gas from the US.
What about LNG requirements and supply?
Its purpose is to install the US as a major supplier of crude oil and petroleum products and is natural gas (LNG) liquefied natural gas (LNG) in India. It has been decided to ramp the business in the hydrocarbon area, which includes ethane and petroleum products, with supply diversification and energy security. Both sides agreed to increase investment, especially in the infrastructure of oil and gas, and energy facilitates more cooperation between companies. It was also mentioned to strengthen civil nuclear power and US support for India to create a complete member of the International Energy Agency (IEA).
What are the needs of India on oil and gas?
India imported a total of 234.26 million tonnes of crude oil in 2023-24. Import dependence touched 87.8% against 87.4% in the last financial year. Domestic production matches less than 13% of the requirement, with domestic crude oil production about 29.36 million tonnes unchanged at the final financial year (2023–24). In terms of volume, imports were almost the same, but the import bill in 2023–24 declined year-on-year to $ 133.37 billion from low international rates. In 2022-23, the oil import bill was $ 157.53 billion. Additionally, India spent $ 22.93 billion on imports of 48.69 million tonnes of petroleum products such as LPG, fuel oil and petcoke. It also exported 62.59 million tonnes of products for $ 47.72 billion.
India also imports LNG. In 2023-24, the country imported 31.80 billion cubic meters (BCM) in $ 13.405 billion. In the last financial year, gas imports were 26.30 BCM for $ 17.11 billion, the Ministry of Petroleum and Natural Gas said in a report, citing the price shock of 2022-23 in view of Ukraine’s Russia’s invasion.
India is keen to increase the share of clean fuel in its energy basket. Emphasizing the strategic importance of energy relations with the US, especially for LNG, Petroleum and Natural Gas, Minister Hardeep Singh Puri said that India wants to increase its natural gas consumption that wants to increase the current 6% to 15%.
In recent years, the US has emerged as one of the largest suppliers of LNG. If the war -related sanctions against Russian are lifted, Europe can again resume natural gas from Russia, allowing the US to increase supply to other existing customers and explore new markets.
How much energy is there from Russia?
While India would like to join the US on increasing energy imports, the country is unlikely to prevent and prevent the energy relations with others. The Petroleum Minister said that the push of the new US administration to increase the supply of oil has created favorable conditions in the global markets. The emergence of new oil sources from Western Hemisphere including Brazil, Argentina, Suriname, Canada, America and Guyana is set to be beneficial for major consumption countries like India.
Supplies from many sources are not necessarily insulated against long-term value volatility, but provide the country different options in the event of geopolitical disturbances. Interestingly, the Trump administration has fallen down to reset relationships with Russia for the first time in recent weeks as the war on Ukraine began in 2022. This will make things easier for India as in the last three years, Russia has emerged as a major crude oil supplier at concessional prices. Citing a report by the Global Think Tank Center for research on PTI and research on clean air, PTI reported that India bought € 49 billion crude oil from Russia in the third year of Moscow’s Ukraine invasion.
India, who traditionally received oil from West Asia, began to import large amounts of oil from Russia after Ukraine’s invasion. This saw a dramatic growth in India’s Russian oil imports, growing up to 40% in at least 1% of its total crude oil imports.
What are India’s plans on LNG?
IEA, in its India Gas Market Report: Outlook Two 2030, says that the country’s gas consumption is scheduled to reach 103 BCMs annually by the end of the decade. Emerging from a decade of slow growth and periodic decline, both 2023 and 2024 increased by more than 10% in the country’s demand for natural gas, which reflects a divine point. India’s domestic gas production, which meets 50% demand in 2023, is estimated to increase, by 2030, it has reached only 38 BCM.
While the total gas consumption in 2023 was only slightly higher than the 2011 level, three major factors are changing to run sufficient increase – rapid infrastructure expansion, domestic production recovery and expected relaxation of global gas market conditions. “India’s gas market is entering a new phase of development, supported by the development of important infrastructure and clear policy direction,” said Sadamori, director of the energy markets and security. “The possibility of high gas demand in India coincides with the expected wave of new global LNG supply. However, to ensure supply safety and compete in the price-sensitive market will require planning and market coordination to help gas, ”he said.
Broadly, what is India’s energy roadmap?
The government is chasing a multi-dimensional strategy to reduce import dependence and replace the demand for crude oil. This electric vehicle charging is also carrying forward renewable and alternative fuel such as charging infrastructure, as well as ethanol, compressed biogas and biodiesel.
Published – March 09, 2025 06:30 AM IST
