QatarEnergy signs 17-year LNG supply agreement with India’s GSPC
Qatar Energy has signed a 17-year agreement with Gujarat State Petroleum Corporation (GSPC) to supply up to one million tonnes per annum (mtpa) of Liquefied Natural Gas (LNG) to India, the company announced on Wednesday, October 29. The contracted LNG volumes will be delivered ex-ship, directly to Indian terminals from 2026. Saad Sherida Al-Kaabi, Qatar’s energy affairs minister and the President and CEO of QatarEnergy, expressed continued commitment to supporting India’s growing energy needs.
India’s first ship-to-ship LNG bunkering facility to come up at Vizhinjam
The first ship-to-ship Liquefied Natural Gas (LNG) bunkering facility in the country will be set up at Vizhinjam International Seaport in Kerala. Adani Ports and Special Economic Zone Ltd (APSEZ) and the Bharat Petroleum Corporation Limited (BPCL) have entered a strategic partnership to establish the first ship-to-ship LNG bunkering facility at Vizhinjam. The Memorandum of Understanding (MoU) was signed on the eve of India Maritime Week 2025, which is being held in Mumbai from October 27 to 31, marking a defining moment in the nation’s maritime energy transition. The agreement was formally exchanged between Ashwani Gupta, wholetime director and CEO, APSEZ, and Rahul Tandon, Business Head, Gas, BPCL. The facility at Vizhinjam Port will serve as a dedicated LNG refuelling hub for international vessels transiting the East-West global shipping corridor. By offering an alternative to conventional marine fuels, the project will enable shipping lines to significantly reduce emissions, aligning India’s maritime industry with the International Maritime Organisation’s decarbonisation targets.
BPCL buys crude from every place including Russia based on viability: CMD
State-owned BPCL has said its crude procurement is based on techno-commercial viability for its refineries and it buys from every geography including Russia. BPCL Chairman and Managing Director Sanjay Khanna said that currently preparation of Detailed Feasibility Report (DFR) is underway for the company’s proposed Greenfield Refinery and Petrochemical Complex near Ramayapatnam Port in Nellore district, Andhra Pradesh and obtaining necessary environmental clearances. “We buy oil from every geography and the oil which is most techno-commercially viable for the refinery, not only me (BPCL), every refiner goes for it. So that is the stand, be it Russian oil or any oil for that matter. That is how we go for it. Whichever is giving us the highest value for the company ensures the reliable operations, Khanna told PTI A senior official of the Department of Petroleum and Natural Gas replying to a query on the crude imports from Russia on Tuesday said those decisions are not taken at the country level but at respective company level. “Companies decide what the most economical oil is and in compliance with the law,” the official told PTI. The official further said there was no direction for the government to any crude importers whether to buy or not to buy from Russia.
India to build own fleet of oil tankers, aims to cut USD 8 Billion charter costs: Hardeep Puri
ndia is planning a major shift in its energy shipping strategy by building its own fleet of oil tankers to reduce the massive freight costs currently paid to foreign vessel operators, Union Petroleum and Natural Gas Minister Hardeep Singh Puri announced on Wednesday. The Tribune Subscription Banner Speaking at India Maritime Week 2025 in Mumbai, Puri revealed that India’s three major oil marketing companies–Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum–spend approximately USD 8 billion over five years on chartering foreign ships, an amount sufficient to purchase an entirely new fleet of crude-oil tankers The Minister highlighted a striking imbalance, while the oil and gas sector accounts for nearly 28 per cent of India’s total trade by volume, making it the single largest commodity group at Indian ports, only around 20 per cent of this cargo is carried on Indian-flagged or Indian-owned vessels. “This challenge we are now turning into an opportunity,” Puri stated, outlining plans to significantly boost India’s maritime capabilities in the energy sector. India’s energy import dependence remains substantial, with the country meeting nearly 88 per cent of its crude oil and 51 per cent of its natural gas requirements through imports. In the fiscal year 2024-25, the crude import bill alone crossed USD 150 billion.
India Extends Largest Oil & Gas Auction Deadline to Dec 2025
The Indian government has once again extended the deadline for submitting bids in the latest oil and gas block auction, known as the OALP-X licensing round. The Directorate General of Hydrocarbons (DGH) announced that the new deadline is December 31, 2025. This decision allows prospective investors additional time to participate in the country’s largest acreage offering to date. Originally scheduled to close in July, the deadline was first pushed to the end of October. The OALP-X round, launched during India Energy Week 2025 in New Delhi, includes 25 blocks covering around 191,986 square kilometers. The offering spans a variety of onshore and offshore blocks across 13 sedimentary basins, including the potential-rich Andaman basin. OALP-X features significant policy benefits under the Hydrocarbon Exploration and Licensing Policy, such as reduced royalties and marketing freedoms. As India seeks to bolster its domestic oil and gas production, this latest round offers promising opportunities for both state-owned and private companies, aiming to address the country’s soaring import bill.
Petroleum Secretary calls for bold, time-bound deepwater exploration for India’s energy self-reliance
Petroleum and Natural Gas Secretary Pankaj Jain on Sunday called for bold, time-bound exploration strategies aligned with the National Deepwater Mission, emphasising urgency, innovation, and national responsibility in realising India’s energy self-reliance, or Atmanirbharta. Delivering the keynote at the 15th Biennial International Conference and Exposition of the Society of Petroleum Geophysicists (SPG-India) 2025, themed “Rock to Cloud: GeoExploration Empowering Energy Evolution in Jaipur, the Secretary urged the stakeholders to combine scientific rigour with commercial vision, noting that India can no longer afford incremental progress. “One day, not too far off, we will be looking at a situation where there will be alternative forms of energy, which will increasingly matter more to us in terms of the incremental demand satisfaction, than fossil fuels, or the way we use fossil fuels itself is going to change. And therefore, it doesn’t matter what the peak will be, when the peak will be; the fact is that we have to try to get those big discoveries,” the secretary said, as per a statement from ONGC. Deep Ocean Mission, launched in 2021, focuses on sustainably harnessing ocean wealth and strengthening the Blue Economy. “We do not have the luxury we used to have a hundred years ago or 150 years ago,” added Secretary Pankaj Jain. On August 15, from the ramparts of the Red Fort this year, Prime Minister Narendra Modi had said, “To make the country developed, we are now moving towards ‘Samudra Manthan’ (churning of the ocean). Taking forward our Samudra Manthan, we want to work in a mission mode towards finding oil reserves, gas reserves under the sea and hence India is going to start the National Deep Water Exploration Mission. This is our important announcement to become energy independent.” The Conference was inaugurated today at the Jaipur Exhibition and Convention Centre (JECC). The conference was inaugurated by the Secretary Jain, in the presence of Chairman and CEO, ONGC and Chief Patron, SPG-India, Arun Kumar Singh, CMD, Oil India Ltd., Dr. Ranjit Rath, Director (Exploration), ONGC, and Patron, SPG-India, O.P. Sinha, and President, SPG-India, Ranbir Singh. Addressing the gathering, ONGC CEO Arun Kumar Singh reaffirmed ONGC’s commitment to advancing India’s deepwater exploration mission, stressing that technological breakthroughs in seismic imaging, AI-driven interpretation, and data analytics will define the next leap in discovery success. CMD, Oil India, Ranjit Rath underscored that India has emerged as one of the most promising destinations for exploration, supported by progressive reforms such as the Open Acreage Licensing Policy (OALP), Hydrocarbon Exploration and Licensing Policy (HELP), and the Offshore Bidding Rounds. Rath called upon India’s geo-scientific community to remain “restless in pursuit of exploration” and deepen efforts in frontier basins, particularly in ultra-deepwater domains.
Russia to remain India’s No 1 crude oil supplier: Analysts
India’s crude oil imports from Russia saw a marginal decline in September, but continued to account for over one-third of the country’s total oil purchases, despite US pressure to curb the trade over concerns that it supports Moscow’s war effort in Ukraine. India’s crude imports in September were around 4.7 million barrels per day, up 2,20,000 bpd month-on-month and flat year-on-year. Russian crude maintained its position as the largest single supplier, contributing about 1.6 million bpd – a 34 per cent share. However, this was roughly 1,60,000 bpd below the average Russian volumes imported during the first eight months of 2025, preliminary data by global trade analytics firm Kpler showed. “Despite the dip, Russian barrels remain among the most economical feedstock options for Indian refiners, given their high GPW (gross product worth) margins and discounts relative to alternatives,” said Sumit Ritolia, Lead Research Analyst (Refining & Modelling) at Kpler. Iraq was the second biggest crude oil supplier to India at around 8,81,115 bpd, followed by Saudi Arabia at 6,03,471 bpd and the UAE at 5,94,152 bpd. The United States was India’s fifth largest supplier at 2,06,667 bpd.
Economics trumps politics: India’s US oil, LNG imports slump sharply
Shipments of crude oil from the US to India dropped by an average of 40 per cent in August and September—coinciding with US President Donald Trump ratcheting up pressure on India—from July levels. Senior industry officials told Business Standard that when it comes to oil and gas, “economics trumps politics”. Imports of LNG from the US declined by 41 per cent last month from a year earlier and by 23 per cent month-on-month. Deliveries of US crude oil in August and September averaged 220,000 barrels per day compared to 364,000 bpd in July, according to data from maritime intelligence agency Kpler. Imports in September were 30,000 bpd lower year-on-year and 23,000 bpd lower month-on-month. US supplies are contracted 45–60 days in advance, which means July is typically contracted in May/June and August/September arrivals are ordered in July/August. Trump announced plans for secondary tariffs on India in July. LNG shipments from the US to India shrank to 0.27 million tonnes last month from 0.46 million tonnes a year earlier and 0.35 million tonnes in August, the data showed. Nine months into 2025, US purchases at 2 million tonnes this year are well below the 5 million tonnes imported in 2024. State-run distributor GAIL, the biggest purchaser of US LNG, which had signed term contracts for a little less than 6 million tonnes a year a decade ago, has found it more profitable to swap its US cargoes than bring them to India, an industry official said.
India’s oil market splits as state refiners cut Russian crude & private players ramp up buys
India’s oil market is split, with state-run refiners retreating from Russian crude amid US pressure and narrowing discounts while private refiners are stepping up sourcing State-run refiners cut Russian crude purchases in September, signalling caution. Their imports averaged 605,000 barrels per day (bpd) — 32% below their April-August average, 22% lower than in August, and 45% below June levels, according to Kpler, a global real-time data and analytics provider. Private refiners lifted 979,000 bpd of Russian oil, 4% above their April-August average, 8% higher than in August, and nearly unchanged from June. Russian crude accounted for just one in five barrels imported by state-run firms in September, and two in three barrels procured by local private refiners. Industry executives cited a mix of factors: rising risks around Russian volumes amid heightened US pressure to curb imports, narrowing discounts, and the need for state companies to diversify supply. With their larger responsibility toward the domestic market, state firms prioritise security over price, they said. Private companies, which hold only about 10% of the local retail market, toggle between domestic and export sales to chase profit, they added.
India’s gas story losing steam? Why high LNG prices are a worry for Gujarat Gas, IGL, MGL — but boosting GAIL
India’s gas market is showing signs of strain, and the latest note from brokerage group JM Financial makes it clear why. Demand has flattened, domestic output is slipping, and expensive LNG in Asia is hurting the very companies expected to expand gas consumption. A recent report by JM Financial highlighted how elevated spot prices are changing margins across city gas distributors, transmission firms, and importers, while only those with Henry Hub-linked contracts are finding some breathing room Henry Hub is the US reference point for natural gas prices. When LNG is sold from America, the price is often linked to Henry Hub. As per the report, US Henry Hub prices have stayed around $3–3.5/mmbtu, far below Asian spot LNG at $11–13/mmbtu. This gap makes Henry Hub-linked cargoes significantly cheaper on a delivered basis, which explains why GAIL, with its US-linked contracts, is better placed than city gas distributors that rely more on spot LNG. At the most basic level total gas demand in August 2025 stood at roughly 190 mmscmd, a drop of about 1.2% from a year earlier. The Jul–Aug average for FY26 to date was only marginally higher at 192 mmscmd, down 1.0% YoY. Domestic consumption slipped further about 92 mmscmd in the first two months of the quarter, falling 4.7% YoY while LNG deliveries accounted for nearly 99 mmscmd in August. The numbers show a market not in expansion but in a cautious holding pattern, the report revealed. Demand and supply dynamics The report’s demand and supply data point to a market stuck in place. Demand is hovering near 190–192 mmscmd, domestic production keeps sliding lower, and LNG imports are not picking up because high spot prices make them unattractive. To put it simply, India’s gas story is stagnating under the twin weight of expensive imports and weaker local output. Costs and pricing gaps Costs is at the heart of the stress. Asian spot LNG is trading around $11–13/mmbtu, far above the long-term norm tied to crude. The comparison with other benchmarks is stark: US Henry Hub-linked cargoes land at a much cheaper rate, while crude-linked contracts sit somewhere in between. This pricing spread is crucial; it explains why companies tied heavily to spot supply are losing ground, while those with Henry Hub-linked volumes, such as GAIL, are benefiting from lower landed costs, the report added Global supply outlook Another important set of numbers in the report highlights global capacity additions. Nearly 210 mmtpa of new LNG liquefaction capacity is expected to come online from 2026 onward, led by projects in the US, Qatar, Russia and Canada. The implication is clear: if these projects materialise on time, spot prices could ease and demand may recover. Until then, India’s buyers will continue to pay more for their cargoes. JM Financial on Indian gas market: Spotlight on key companies Gujarat Gas: The report calls Gujarat Gas vulnerable. Roughly 20–30% of its volumes come from spot LNG, which means when spot is high the company has little choice but to absorb the cost. For a distributor serving price-sensitive industries, that is a serious disadvantage. Gujarat Gas is effectively paying more for gas that competitors in other fuels can undercut. Indraprastha Gas (IGL): Indraprastha Gas faces another problem i.e reduced allocation of cheaper APM gas. As the JM Financial report, less APM means IGL has to buy more expensive market-priced volumes to keep CNG pumps running. The economics of CNG, which drive much of its business, weaken as a result Mahanagar Gas (MGL): Mahanagar Gas is in the same boat as IGL. Allocation changes force it toward higher-priced volumes. For a city gas distributor whose bread and butter is CNG and household PNG, sustained high spot LNG is a direct hit on margins, the JM Financial report added. GAIL: GAIL, by contrast, stands out in the report as more resilient. Its Henry Hub-linked LNG contracts are proving profitable at current spreads. The company’s portfolio and trading flexibility allow it to capture gains that others cannot. The caveat is clear though if Henry Hub rises sharply, the advantage could vanish. The report cited nearly 210 mmtpa of new LNG liquefaction capacity expected from 2026 onwards, with major projects in the US, Qatar, Russia and Canada. The bars rise steeply after 2026. This is the hope that more supply could drag spot prices back toward historical norms. But until those projects come online, India remains exposed to costly cargoes. Petronet LNG: Petronet LNG appears in the note as the key regasification player. Its long-term RasGas contract, priced off crude, offers a different cost profile than spot cargoes. But when overall demand is weak, terminal utilisation drops. The JM Financial report notes a decline in regas use during this high-spot period, which caps revenue for Petronet despite its contract base. Gujarat State Petronet (GSPL): For GSPL, the issue is transmission volumes. Lower LNG demand and weaker industrial uptake mean less gas flowing through pipelines. While fixed fees provide some stability, variable throughput-linked income takes a hit, the report added. JM Financial on Indian gas market: Risks and signals: The report identified clear risks. Execution delays in the global capacity buildout could prolong high spot prices. European storage dynamics and geopolitical shifts add uncertainty. On the domestic side, further slippage in production would increase import dependence. Investors, the report suggests, should keep an eye on JKM levels, Henry Hub, India’s monthly output data, regas utilisation, and APM allocation decisions. Each will decide whether margins worsen or improve in the months ahead.