India is looking to expand its energy ties with the US as state-run oil and gas firms explore new deals and investments ahead of Prime Minister Narendra Modi’s visit to Washington later this week.
Government-owned companies, including GAIL, Indian Oil Corporation (IOC), Bharat Petroleum and Petronet LNG, are evaluating options to increase imports and acquire stakes in American energy projects, officials said.
The US became India’s second-largest supplier of liquefied natural gas (LNG) in 2023, surpassing the UAE, with exports reaching 3.09 million tonnes (mt).
Meanwhile, ONGC has signed a memorandum of understanding (MoU) with global energy major BP to collaborate on exploration, production, trading, and other energy initiatives in India and overseas.
Union oil minister Hardeep Singh Puri on Monday emphasised that India remains open to energy imports from all sources at the lowest possible prices. He noted that domestic oil marketing companies are scouting for additional supplies of gas, which are expected to become cheaper by 2026.
“We have expanded our supplier base from 27 to 39, adding countries like Argentina,” Puri said at a press conference ahead of Indian Energy Week (IEW) 2025, set to begin on Tuesday.
“Our tenders are open to any supplier, and we always procure from the most competitive source,” he said, dismissing concerns over supply disruptions from Russia due to US sanctions.
Puri expects natural gas prices to decline significantly in 2026, driven by increased global supply. India may also receive additional volumes from Qatar under long-term contracts, he added.
A senior official said state-run oil firms—IOC, Bharat Petroleum, and GAIL—are exploring long-term LNG purchase agreements with US exporters, including Cheniere Energy Inc. Indian firms may also consider investing in American energy projects if the terms are favourable.
These negotiations coincide with Prime Minister Modi’s upcoming visit to the US, where energy co-operation is expected to be high on the agenda.
“I would be surprised if energy sourcing from the US is not part of the discussions,” Puri said.
He also highlighted that US President Donald Trump’s push to maximise American oil and gas production presents a positive opportunity for India, which aims to secure more affordable energy supplies.
With the US recently lifting a freeze on LNG export permits, Indian oil companies are actively exploring deals with American suppliers.
“The world’s fourth-largest LNG importer, India aims to raise gas usage to 15 per cent of its energy mix by 2030, up from 6.2 per cent now,” oil secretary Pankaj Jain said.
