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Sourcing more energy from US likely to feature in Modi-Trump talks

2025-02-10 00:00:00.0 商业标准报-经济和政策原网页

Sourcing more energy from the US is expected to feature in the upcoming meeting between Prime Minister Narendra Modi and President Donald Trump, Petroleum and Natural Gas Minister Hardeep Singh Puri said on Monday. Modi on Monday left for a two-day visit to France, followed by a working trip to the US later in the week.

"I would be surprised if sourcing more energy from the United States doesn't come up," Puri told the media. Energy imports from the US have the potential to rise given Washington DC's intent of reducing global prices, Puri indicated. "It's a dynamic situation. We are open to imports from all sources," the minister stressed.

Case in point, India's list of suppliers of oil has moved up to 40 now with the latest inclusion of Argentina, from 27 earlier, he pointed out.

The petroleum ministry has signalled its willingness to source more oil from the US, to the Ministry of External Affairs (MEA) and the Prime Minister’s Office (PMO), officials said. Meanwhile, Trump's win is being seen as a net positive for India's energy security, and crude oil import scenario in particular. India imports 85 per cent of its crude requirements.

Inbound crude volumes from the US may spike from April onwards as the Trump administration removes barriers to export, and authorises natural gas quotas, officials said. US shale oil would act as an alternative to India's heavy dependency on Russian crude, which is currently facing sanctions, they said.

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Growing fast

The US was the fifth-largest source of crude oil for India in the first eight months of 2024-25 (FY25), sending $4.1 billion worth of crude, according to commerce department data. Despite the Joe Biden administration's focus on transitioning to cleaner fuels, the US has remained the fifth largest source of crude for India for two straight years, dropping a position since FY22. Crude imports from the US had picked up during Trump's first stint in the White House. The share of crude oil imports from the US increased to 9 per cent in FY21, up from 0.7 per cent in FY18, data shows. It has substantially entrenched itself in India's import mix in recent years.

Officials are also increasingly looking at the US as a significant source of liquefied natural gas (LNG) for India. Trump has signed an executive order, allowing the US government to resume processing export permit applications for new LNG projects. In January last year, the Biden administration had announced a temporary pause on pending decisions on exports of LNG to nations with which it doesn't have a free trade agreement (FTA) until the US's Department of Energy updated the underlying analyses for authorisations. India does not have an FTA with the US.

The US is the largest LNG exporter worldwide, with shipments expected to double by the end of this decade. Data from the US Energy Information Administration (IEA) shows LNG shipments to India began rising fast from early 2020 as the Covid pandemic hit. Monthly traded volumes had risen to a high of 28,259 million cubic feet in May 2021, before falling. Volumes had stood at 13,698 million cubic feet as of October 2023, after which the IEA discontinued publishing monthly data.

Open to imports

> Energy imports from the US have the potential to rise, said oil minister Hardeep Singh Puri

> India’s list of suppliers has risen to 40 from 27 earlier

> Imports from the US an alternative to India’s heavy dependency on Russian crude

> Crude imports from the US had picked up during Trump 1.0