Govt to revisit ethanol blending progress before announcing new targets: Puri
Union Petroleum and Natural Gas Minister Hardeep Singh Puri announced that the government will review India’s ethanol blending programme before setting new, higher targets. India achieved its target of 20% ethanol blending in petrol six years ahead of schedule, reaching 10% blending by 2022, five months before its deadline. Puri rejected concerns about E20 fuel affecting engine health and mileage, stating such claims are inaccurate. He also highlighted broader energy sector reforms, including the Oilfield (Regulation and Development) Amendment Bill to attract global investors and renewed interest in rejuvenating offshore oil basins. Puri mentioned India’s first bamboo-based ethanol plant in Assam as a significant milestone and expressed confidence in India’s ability to reduce green hydrogen costs to below $3 per kilogramme, making it globally competitive.
India’s Nayara Energy raises fuel supply to HPCL after EU sanctions
India’s Nayara Energy has raised fuel sales to state retailer Hindustan Petroleum Corp after the Russia-backed refiner’s exports were hit by European Union sanctions, a government source said on Tuesday. Since the imposition of sanctions, Nayara has been operating its 400,000 barrel-per-day (bpd) Vadinar refinery in western India at 70-80% capacity. Higher local sales of refined fuels would help the company to sustain its refinery runs, the source added. “We would like them (Nayara) to operate at as high capacity as it can,” the source, who did not wish to be identified, told reporters. While other state fuel retailers – Indian Oil Corp and Bharat Petroleum Corp – are self sufficient, HPCL buys some quantity of diesel and petrol from other companies for local sales, the source said.
Azerbaijan resumes crude oil exports to India
After a 10-month hiatus, Azerbaijan has resumed crude oil exports to India, Report informs, citing Azerbaijan’s State Customs Committee. In August 2025, Azerbaijan exported 1,747.07 tons of crude oil to India, valued at $781,520, marking a sharp decline of 589 times in volume and 827 times in value compared to the same period last year. Crude oil exports to India accounted for just 0.01% of Azerbaijan’s total oil exports. According to the customs declarations, Azerbaijan exported more than 15.924 million tons of crude oil and related products obtained from bituminous rocks, valued at just over $8.396 billion in the initial eight months of 2025. Overall, Azerbaijan conducted foreign trade operations worth $32.118 billion in the first eight months of 2025. Of this, $17.065 billion came from exports and $15.053 billion from imports. India had suspended oil imports from Azerbaijan in October 2024. Overall, Azerbaijan supplied India with 1.168 million tons of oil worth $729.797 million last year.
India’s LNG demand drops in 2025 as buyers await supply wave, price drop
India’s annual liquefied natural gas demand is set to contract in 2025 for the first time in years, as buyers hold out for a surge in production that is expected to push down prices. The world’s fourth-biggest LNG importer bought about 16 million tonnes of the super-chilled gas in the eight months through August, down 10 per cent from a year earlier, according to ship-tracking data compiled by Bloomberg. Purchases slowed as elevated spot prices made LNG less competitive against alternative fuels, while monsoon rains brought cooler weather and reduced power demand. The pullback offers some relief to a global gas market that’s remained tight since Russia’s 2022 invasion of Ukraine forced Europe to pivot to LNG, boosting competition with Asia. India’s imports are expected to rebound as soon as next year, helped by a looming supply glut that should drag prices lower. Projects coming online from the US to Qatar starting in 2026 are set to add volumes that will outstrip demand growth through the rest of the decade. “We expect the dip in 2025 is a temporary price-driven phenomenon,” said Kaushal Ramesh, vice president for gas & LNG research at Rystad Energy. “The years ahead will see more contracts ramp up and also lower spot prices.” Demand for gas from industries, refineries and the fertilizer sector in the South Asian nation has plunged this year, according to oil ministry data, mainly due to high prices. Asian spot LNG has traded at more than $11 per million British thermal units this year — above the level at which price-sensitive Indian companies typically step in to buy.
Indian oil marketing companies are thriving amid global volatility: HSBC
The Indian oil marketing companies have thrived in a volatile global market, with support from the Indian government, HSBC Research said in a research note. According to HSBC, oil marketing companies have witnessed volatility in refining margins over the last six months, a potential risk in the U.S., which has prompted India to reduce its purchases of Russian crude oil and the depreciation of the Rupee against the U.S. dollar. However, the Indian government has been backing oil marketing companies by supporting decisions which are in the best interests of the companies. Even in August, India imported 1.3 mbpd of Russian crude oil and promised to pay LPG under-recovery, which was incurred in FY24. All these factors, according to HSBC, have culminated in stocks of oil marketing companies rising by 14–23% in the last six months, whereas the Nifty50 has gained 12% in the same period. The HSBC note also adds that the refining margin of oil marketing companies had expanded in the interim period, and the depreciation of the Indian rupee ate away some of the marketing margins. Despite these headwinds, the combined margins have remained steady at $22–25/bbl, higher than HSBC’s full-year estimates
Govt to push isobutanol blending with diesel after ethanol trials fail
Diesel in India will soon be blended with isobutanol instead of ethanol after initial trials with ethanol did not deliver the expected results, Union Road Transport and Highways Minister Nitin Gadkari said on Thursday. Speaking at the India Sugar and Bio-Energy Conference, the minister said that the government is committed to expanding biofuel use as part of its clean energy and farm income strategy. Gadkari acknowledged that ethanol–diesel blending trials had failed. “We tried ethanol with diesel but the results were not satisfactory. Now isobutanol will be blended with diesel,” he said. Trials with isobutanol are in progress and according to him, blending levels will be increased in the coming months.
EU-US policy divide on Russian oil sales to India to hit October trade
The growing policy divide between the United States and the European Union on Russian oil exports to India is likely to play out in a small reduction in crude flows in October, analysts and trade sources with knowledge of loading plans said. The U.S., EU and G7 allies sanctioned Russian imports after Moscow’s invasion of Ukraine, and prohibited insurers and maritime service providers from facilitating exports to third countries unless they were below a price cap. The purpose of the cap was to limit the price that importers could pay for Russian oil while keeping shipments flowing, thereby reducing Russian oil revenue and preventing a supply crunch that would push up oil prices. The scheme effectively encouraged India and China to buy the oil at discounted prices. U.S. President Donald Trump has, however, changed policy on Russian exports to India. He has demanded India stop buying Russian oil completely and then doubled tariffs to as much as 50% on Indian exports to the United States when New Delhi refused to halt the oil imports.
TotalEnergies Boosts U.S. LNG Portfolio With Rio Grande Train 4 Investment
TotalEnergies (NYSE: TTE) has secured a 10% direct stake in Rio Grande LNG’s Train 4 project in South Texas, joining partners NextDecade, Global Infrastructure Partners, GIC, and Mubadala in taking a Final Investment Decision (FID) on the 6 Mtpa expansion, set to boost the plant’s total capacity to 24 Mtpa by 2030. The French major also holds an indirect interest of nearly 7% through its 17.1% stake in NextDecade, bringing its total exposure to the new liquefaction train to about 17%. At the same time, TotalEnergies, NextDecade (40%), Global Infrastructure Partners (36.9%), Singapore sovereign fund GIC (7.9%), and Abu Dhabi’s Mubadala (5.2%) reached a Final Investment Decision on the fourth train. The $multi-billion expansion is expected to add 6 million tons per annum (Mtpa) of liquefaction capacity, taking Rio Grande LNG’s output to about 24 Mtpa by the end of the decade. Financing will be split roughly 40% equity and 60% debt. TotalEnergies will offtake 1.5 Mtpa from Train 4 under a 20-year contract, reinforcing its U.S. export position. Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies, highlighted that the additional volumes will increase the company’s U.S. LNG export capacity to over 16 Mtpa by 2030. “It gives TotalEnergies access to competitive LNG thanks to low production costs,” he said. The deal builds on a long-standing partnership. TotalEnergies already holds 16.7% of Phase 1 of Rio Grande LNG—three trains now under construction and expected online in 2027—and has contracted 5.4 Mtpa offtake from that phase. In addition, its equity stake in NextDecade links it directly to the project operator’s wider ambitions. NextDecade Chairman and CEO Matt Schatzman said TotalEnergies’ expanded role underscored the project’s competitiveness and strategic importance. “LNG exported by TotalEnergies from our project will provide affordable, reliable, and secure energy to customers around the world,” he noted. The expansion comes amid strong global LNG demand growth, with Europe seeking secure alternatives to Russian gas and Asia driving long-term consumption. For TotalEnergies—the world’s third largest LNG player with a 40 Mtpa global portfolio—the move supports its strategy to raise natural gas to nearly half its sales mix by 2030 while phasing down coal and reducing methane emissions. With Train 4 advancing, Rio Grande LNG is set to cement its role as one of the largest LNG export hubs in North America, reinforcing the U.S.’s position as the world’s leading LNG supplier.
Japan’s JERA Eyes 20-Year LNG Deal With Alaska LNG
JERA is considering joining companies making commitments for purchases of liquefied natural gas from the Alaska LNG project, Reuters has reported, with a preliminary letter of intent mentioning 1 million tons annually over a 20-year period. The developer of the Alaska LNG project, Glenfarne, has been busy in the past months finding companies willing to make offtake commitments for the $44-billion project that is being actively promoted by the Trump administration. The company is yet to make a final investment decision on Alaska LNG but plans to make one for the facility’s pipeline by the end of the year, and another for its export terminal in 2026. Japanese companies have been particularly interested in the Alaska LNG project, for geographical reasons and because the government in Tokyo committed to buying $7 billion in U.S. energy per year as part of the trade deal with Trump to avoid tariffs. Energy companies are ready to commit to buying $115 billion worth of LNG from Alaska once President Trump’s pet energy project gets done, Glenfarne said in June, noting that as many as 50 companies have expressed formal interest. However, there have been reports about Japanese companies expressing worry about the price tag of the project, which may end up being too high. Earlier this month, Reuters reported that Japan had hired Wood Mackenzie to study the long-term viability of Alaska LNG with a view to reassuring Japanese investors that their investment would be safe. The Alaska LNG project involves an 800-mile gas pipeline running from Alaska’s North Slope to a liquefaction plant on the southern coast, enabling stranded reserves to reach global markets. Despite decades of planning, the sheer cost and remoteness have left the project on ice for quite a while. Now, President Trump is championing the project and 9its commercial viability appears to have improved.
India’s Petroleum and Other Liquid Fuels Consumption seen up around 3% on year in 2025
Energy Information Administration or EIA stated in a latest monthly update that India’s Petroleum and Other Liquid Fuels Consumption is expected to see a continued increase in new few quarters. It estimates India’s petroleum and other liquid fuels consumption at 5.64 million barrels per day (mbpd) in 2025, up 3.10% compared to previous year. The consumption is seen rising to 5.92 mbpd in 2026, up around 5% compared to 2025. India’s Petroleum and Other Liquid Fuels production is also seen rising around 3% on year to 1.05 mbpd in 2026.