Indian oil companies are in talks with U.S. LNG suppliers to purchase their supplies

Pankaj Jain, the Oil Secretary of India, said that Indian oil companies were looking to purchase U.S. LNG. This was boosted by Trump's administration lifting its ban on new export permits.

India, the world's fourth-largest LNG importer, aims to increase its gas share in its energy mix from 6.2% to 15% by 2030.

Jain stated that Indian oil companies were in talks with U.S. firms to source additional LNG. Among these companies, he said, were GAIL (India) Ltd., Indian Oil Corp. and Bharat Petrol Corp.

Jain, a reporter, said that Indian companies will discuss gas supply with U.S. LNG suppliers on the sidelines the India Energy Week four-day conference starting Monday.

He added that Indian companies might consider purchasing stakes in U.S. LNG Projects if the deals are attractive.

Sandeep Kumar Gupta said that GAIL would revive plans to purchase a stake in an American LNG plant or secure long-term US gas deals.

GAIL imports 5,8 million tons of U.S. Liquefied Natural Gas (LNG) annually, under long-term agreements. The LNG is split between Berkshire Hathaway Energy’s Cove Point facility and Cheniere Energy’s Sabine Pass plant in Louisiana.

Qatar supplies the bulk of India's LNG under long-term deals, and prices are linked to crude oil. Jain suggested that India's gas sourcing should be a mixture of U.S. Henry hub and crude oil-linked prices.

Indian companies are especially keen to purchase LNG from the U.S., as crude oil can be bought from multiple sources.

Hardeep Singh Puri, the Indian Oil Minister, said that energy imports will be discussed this week when Prime Minister Narendra Modi and President Donald Trump meet.

At least six Asian nations, including Japan, Taiwan and South Korea, have expressed an interest in purchasing U.S. LNG. Some are looking to reduce their trade deficits due to Trump's tariff threats while others want to diversify and expand supplies. Clarence Fernandez edited this article.

(source: Reuters)