GAIL, CONCOR ink pact for LNG use
State-owned natural gas transmission and marketing company GAIL (India) and Container Corporation of India have signed an MoU to assess the feasibility of using Liquefied Natural Gas (LNG) as fuel for CONCOR’s logistics fleet. The collaboration seeks to harness LNG’s advantages as a cleaner and more cost-effective alternative to diesel, which could result in reduced emissions and lower operational costs, GAIL said on Friday following the MoU signed in the presence of Director (Marketing) Sanjay Kumar and CONCOR CMD Sanjay Swarup. The MoU is yet another step towards CONCOR’s commitment to provide sustainable logistics solutions. It has already established LNG station at MMLP Khatuwas in Rajasthan and procured a fleet of 130 LNG trailers, which is resulting in reduction in carbon foot prints in the company’s day to day operations, Mr.Swaroop said. Mr. Sanjay Kumar said GAIL holds the largest LNG portfolio in the country, with contracts spanning multiple geographies worldwide that position it as a reliable LNG supplier.
Oil Down Nearly 3% As White House Tariff Talk Rumors Fly
Oil prices declined on Wednesday even amid reports that the White House is contemplating significant cuts to tariffs on Chinese imports, a move that could reshape global trade dynamics and influence energy markets. On Wednesday, April 23, at 1:46 p.m. Brent crude was trading down 2.73% at $65.60, while U.S. West Texas Intermediate (WTI) crude dropped 2.0% to $68.37, collapsing to a four-year low after reaching $81 in January. The Trump administration is reportedly considering reducing tariffs on Chinese imports from the current 145% to between 50% and 65%, contingent on successful negotiations with Beijing, according to unnamed sources cited by Reuters on Wednesday. While President Trump expressed optimism about a potential deal, he did not confirm specifics. Analysts suggest that the prospect of eased trade tensions between the world’s two largest economies could bolster global economic growth, potentially increasing oil demand. However, the immediate market reaction is downward, driven by concerns over-supply and the timing of any trade agreement.? The U.S. and China account for around 20% of global oil demand each, which bodes ill for a potential economic slowdown, which could lead to a sharp reduction in demand. In response to a weaker economy and rising OPEC+ supply, oil prices remain under pressure, particularly with eight OPEC+ nations beginning a gradual phase-out of voluntary production cuts on April 1. Additionally, Reuters cited sources on Wednesday indicating that OPEC+ might consider further accelerating output increases in June, following higher-than-planned hikes in May due to rising tensions over compliance with production quotas. Market observers will continue to monitor developments in U.S.-China trade negotiations and OPEC+ production decisions, both of which are poised to significantly impact oil prices in the coming months.?
India sweetens oil block bids with lease reform, arbitration freedom
From the nine iterations of the oil acreage licensing policy (OALP), the major change in the tenth version, due out in August this year, will be twofold. The first of those is the expanded definition of mineral oils to include shale oil, shale gas and coal-bed methane. The other one is the freedom to pursue international arbitration in the event of disputes, as well as offering a longer lease period for the fields the companies win. Combined with the removal of windfall tax on domestically produced crude that was in effect since July 2022, prospective bidders now have a realistic chance to make profits from their discovered fields. That all of these changes have come through Parliament is significant, since executive notifications, foreign investors have discovered, could be overturned easily. The expanded definitions and wider rights to arbitration come from the amendment in the Oilfields (Regulation and Development) Act of 1948, passed by both Houses of Parliament by March 2025.
Natural gas import bill increases 13% to $15.2 billion in FY’25
India’s natural gas import bill surged by 13% to $15.2 billion during the financial year 2024-25, compared with $13.4 billion in FY24, driven by rising consumption, according to data from the Petroleum Planning and Analysis Cell (PPAC). In March, the import bill increased by approximately 8.3% to $1.3 billion, compared to March 2024. The country imported 36,699 million standard cubic meters (mmscm) of liquefied natural gas (LNG) during FY25, reflecting a 15.4% increase over FY24. India’s natural gas consumption rose by 7% to 72,293 mmscm, driven by higher demand from the city gas distribution (CGD), fertiliser, and power sectors. This pushed the country’s reliance on imported gas to 50.8%, up from 47.1% in the same period last fiscal. Analysts attributed this growth to a combination of rising demand and stabilised global natural gas prices, which had previously surged to record highs in FY23. Despite the rise in imports, domestic natural gas production declined marginally by 1% to 36,113 mmscm during FY25. State-owned Oil and Natural Gas Corporation (ONGC) produced 18,795 mmscm of natural gas during this period, a decline of almost 3% from 19,316 mmscm in FY24. Production remained below targets, highlighting the widening gap between demand and domestic supply.
India’s Oil Imports From OPEC Hit Record Low as Russian Flows Soar
OPEC’s market share in India slumped to an all-time low of below 50% of India’s crude oil imports in the 2024-2025 fiscal year, as Russian oil flows to the world’s third-largest crude importer continued to rise and dent the share of the Middle Eastern producers. India’s imports of crude from Russia increased by 7.3% to an average of 1.76 million barrels per day (bpd) in the 2024-2025 fiscal year ending March 31, 2025, according to data obtained and compiled by Reuters. This gave Russia, now India’s single largest crude supplier, a 36% share of the market of an average of 4.88 million bpd of total imports. While the Russian share of Indian oil imports rose slightly in 2024-2025 from a year earlier and has been steadily increasing for the past three years, the share of OPEC in India’s crude purchases declined to 48.5%, an all-time low, according to the data. Since the Russian invasion of Ukraine and the bans on Russian oil in the West, India has become a key buyer of Russian crude, alongside China. Russia, for its part, became the single biggest oil supplier to India. Russia is an ally of OPEC in the OPEC+ agreements to “stabilize the market,” but it has been denting the share of Iraq, Saudi Arabia, and other major Middle Eastern OPEC producers in India. Indian imports of Saudi crude fell to the lowest in 14 years, Reuters has estimated. The higher official selling prices (OSPs) of Saudi supply for most months in 2024-2025 haven’t helped higher purchases amid available cheap oil from Russia, industry sources told Reuters. The price-sensitive Indian buyers have preferred cheap Russian crude supply, when available. India will continue to buy Russian oil if it is sold below the $60 per barrel price cap and delivered on non-sanctioned tankers and without any involvement of sanctioned companies or individuals, Indian officials said earlier this year after the U.S. sanctions in January created market chaos for several weeks before tanker supply chains adapted.
India, Saudi Arabia exploring joint refinery, petrochemical projects, Modi says
India and Saudi Arabia are exploring joint projects in refineries and petrochemicals, Indian Prime Minister Narendra Modi told Arab News in an interview, as he began a two-day visit to the country on Tuesday. “We are now working on feasibility studies for electricity grid interconnectivity between India and Saudi Arabia and the wider region,” he added. The visit comes at a time when Saudi Arabia—one of India’s top three crude suppliers—is looking to increase its oil exports to New Delhi amid slowing demand from China. With the Chinese economy facing headwinds and a growing shift towards electric vehicles, Riyadh is recalibrating its energy strategy, and India’s growing crude demand offers a timely alternative. Sources say Saudi Arabia may offer crude oil at concessional rates to secure a greater share of India’s energy market. The kingdom is also eyeing investments in at least three refinery projects across eastern and western India. These include renewed interest from Saudi Aramco in partnering with Indian public-sector giants like BPCL and ONGC, as part of broader downstream collaborations. “Saudi Arabia is facing some headwinds. Oil prices have declined by nearly 20 percent in 2025, and with OPEC+ increasing output, the bearish trend may persist,” said Mahesh Sachdev, former Indian ambassador and energy expert. “China, Saudi Arabia’s largest crude buyer, has sharply reduced its imports.” With India now Aramco’s second-largest customer and its oil demand still strong, the kingdom sees New Delhi as a strategic partner to offset losses in the Chinese market. However, Aramco’s exports to India actually fell by more than 4% year-on-year in 2024–25, driven largely by price competition and limited downstream engagement. “Saudi Arabia can reverse this trend by offering competitive pricing and demanding stronger energy security guarantees. Acquiring downstream assets in India is a key part of that strategy,” Sachdev suggested. On the economic front, Saudi Arabia’s ambitious Vision 2030 reform plan is also facing budgetary pressures. According to Sachdev, meaningful investment and participation from Indian companies in Saudi energy infrastructure could help bridge financial gaps in the kingdom’s diversification efforts.
Reliance imported 17.3% more Russian oil in March as against Feb
Reliance Industries, operator of the world’s biggest refining complex, imported about 532,700 barrels per day (bpd) of Russian oil in March, up 17.3% from February, according to ship tracking data obtained by Reuters’ industry sources. Russian oil accounted for about 48.5% of Reliance overall crude imports in March, the data showed. Reliance’s overall monthly imports declined about 19% to 1.1 million bpd, the Reuters data showed, ahead of maintenance shutdown of units at one of its refineries. Russia’s state oil firm Rosneft has a deal to supply nearly 500,000 bpd of crude to Reliance in the biggest ever energy deal between the two countries. The sources declined to be identified as they were not authorised to speak with the media, said Reuters. India imported 5.3 million barrels per day (bpd) oil in March, a growth of 1.3% from the previous month and 3.8% from a year earlier, Reuters report revealed. In 2024-25 fiscal year, India imported an average 4.88 million bpd oil, up 5% from a year ago, the data showed. Russia continued to be the top oil supplier to India in 2024-25 followed by Iraq and Saudi Arabia, the data showed. India, the world’s third biggest oil importer and consumer, has been tapping Russian oil sold at a discount after Western nations imposed sanctions on Moscow over the Ukraine war. As a result, the share of OPEC oil in India’s imports fell to a record low in fiscal year 2024-25. Russia is an ally of the Organization of Petroleum Exporting Countries but has eaten into the market of key OPEC producers from the Middle East. Altered trade flows due to geopolitical tensions and costlier shipments from some traditional suppliers have pushed India to diversify sources of crude and tap cheaper supplies from even far-flung areas such as Russia.
Oil Prices Stabilize on Short-Covering and an OPEC+ Output Decline
Crude oil prices stabilized today, following Monday’s dip, and even made some gains earlier in the day, as traders rushed to cover their short positions on the commodity, and production figures from OPEC+ showed a decline for March, to the tune of 360,000 barrels daily. At the time of writing, Brent crude was trading at $66.59 per barrel, with West Texas Intermediate at $63.73, both up from Monday’s close. Meanwhile, President Trump has gone on the offensive against Federal Reserve chair Jerome Powell, insisting that the central bank cut interest rates, otherwise there is a danger of the U.S. economy slowing. The move prompted a selloff in U.S. stocks, debt, and dollars, Bloomberg reported. ING noted Trump’s pressure on Powell had raised doubts about the central bank’s independence, which had in turn affected sentiment towards the U.S. economy. “Some short-covering emerged after Monday’s sharp sell-off,” Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, told Reuters. “However, concerns about a potential recession driven by the tariff war persist,” Kikukawa added. Tariff fears are indeed still running high, with expectations overwhelmingly gloomy. The latest commodity import update from China did not help change that. Per the fresh figures, China did not import any U.S. liquefied natural gas last month, imports of U.S. liquefied petroleum gas dropped by 36% and coal imports declined by 62% in the first real-life evidence of the impact tariffs are having on bilateral trade. “While the flat [oil] price has come under renewed pressure, the prompt timespread has strengthened,” ING analysts wrote in a note. “It’s trading close to US$1/bbl backwardation. This suggests that the spot market is still relatively tight. In addition, refinery margins have been relatively well supported despite growing demand concerns.” On the other hand, the analysts reiterated their expectation of an oversupplied market this year.
India introduces new measures to improve natural gas affordability and supply
India has announced significant changes to its domestic gas allocation policy to enhance the availability and affordability of natural gas. Starting from the first quarter of fiscal 2026, allocations for compressed natural gas (CNG) and piped natural gas (PNG) will be made on a two-quarter advance basis. The revamped policy includes new well gas (NWG) from the nomination fields of the state explorers Oil and Natural Gas Corporation (ONGC) and Oil India. The forecasts provided by ONGC and Gail will supply visibility for city gas distribution (CGD) entities in advance, thereby improving planning and delivery efficiency. Additionally, the auction-based allocation for NWG will be replaced with a quarterly pro-rata allocation to ensure a timely and reliable supply of natural gas. GAIL will distribute NWG to CGD entities in proportion to their needs, in line with the current guidelines set by the Ministry of Petroleum and Natural Gas (MoPNG). Both administered pricing mechanisms (APM) gas and NWG prices are linked to Indian crude basket prices, calculated monthly. The government anticipates that this allocation strategy will make natural gas more affordable for CNG and PNG consumers, especially after a recent decline in crude prices. The distribution of natural gas sold under the government-regulated APM has declined over the years because of reduced production at domestic wells, reported Reuters.
The US Remained World’s Largest Liquefied Natural Gas Exporter In 2024 – Analysis
The United States exported 11.9 billion cubic feet per day (Bcf/d) of liquefied natural gas (LNG) in 2024, remaining the world’s largest LNG exporter. LNG exports from Australia and Qatar—the world’s two next-largest LNG exporters—have remained relatively stable over the last five years (2020–24); their exports have ranged from 10.2 Bcf/d to 10.7 Bcf/d annually, according to data from Cedigaz. Russia and Malaysia have been the fourth- and fifth-largest LNG exporters globally since 2019. In 2024, LNG exports from Russia averaged 4.4 Bcf/d, and exports from Malaysia averaged 3.7 Bcf/d. U.S. LNG exports remained essentially flat compared with 2023 mainly because of several unplanned outages at existing LNG export facilities, lower natural gas consumption in Europe, and very limited new LNG export capacity additions since 2022. In December 2024, Plaquemines LNG Phase 1 shipped its first export cargo, becoming the eighth U.S. LNG export facility in service. We estimate that utilization of LNG export capacity across the other seven U.S. LNG terminals operating in 2024 averaged 104% of nominal capacity and 86% of peak capacity, unchanged from the previous year. While Europe (including Türkiye) remained the primary destination for U.S. LNG exports in 2024, accounting for 53% (6.3 Bcf/d) of the total exports, the share of U.S. LNG exports to Asia increased from 26% (3.1 Bcf/d) in 2023 to 33% (4.0 Bcf/d) in 2024. U.S. LNG exports to other regions, including the Middle East, North Africa, and Latin America, also increased last year and accounted for 14% (1.6 Bcf/d) of total exports, compared with 8% (0.9 Bcf/d) in 2023. In 2024, U.S. natural gas exports to Europe decreased by 19% (1.5 Bcf/d), mostly to countries in the EU and the UK. U.S. LNG exports increased only to Türkiye and Greece in 2024—by 0.2 Bcf/d and 0.1 Bcf/d, respectively, compared with 2023. Türkiye imported more U.S. LNG compared with the prior year mainly to offset a decline in imports from other countries, such as Egypt and Russia. U.S. LNG exports to other EU countries and the UK decreased by 24% (1.7 Bcf/d) compared with 2023, primarily because of lower natural gas consumption and high storage inventories following the mild 2023–24 winter. At the same time, LNG import capacity in the EU and the UK expanded by more than 40% between 2021 and 2024 and will continue to grow in 2025 once new and expanded regasification facilities in Croatia, Cyprus, and Italy come online. As in 2023, the Netherlands, France, and the UK imported the most U.S. LNG among countries in Europe, accounting for a combined 46% (2.9 Bcf/d) of the regional total. Since Germany started LNG imports in December 2022, U.S. LNG exports to Germany have grown and averaged 0.6 Bcf/d in both 2023 and 2024. However, in early 2025, Germany reduced its regasification capacity by terminating a charter for one of its floating storage and regasification units, citing high operational costs. In 2024, countries in Asia imported 33% (4.0 Bcf/d) of total U.S. LNG exports. Among countries in Asia, Japan, South Korea, India, and China imported the most U.S. LNG—a combined 76% (3.0 Bcf/d). U.S. LNG imports increased the most in India—by 0.2 Bcf/d. Other countries in Asia imported 24% (1.0 Bcf/d) of U.S LNG.