India to raise LNG import capacity by 27% to 66.7 million tons a year
India plans to raise its liquefied natural gas (LNG) import capacity by 27% to 66.7 million metric tons per year by 2030 as it is adding two more terminals, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said in a post on social media platform X (formerly Twitter) on Tueaday. Currently, India is the world’s fourth-largest gas importer with eight LNG terminals comprising a combined capacity of 52.7 million tons a year. The country aims to raise the share of gas in its energy mix to 15% by 2030 from about 6% at present to cut its carbon footprint. In his post, Puri also shared that India will have 49 more LNG dispensing stations by December, in addition to 13 stations running currently. Having set a 2070 net-zero goal. India aims to raise its LNG dispensing stations for vehicles to 1,000.
Nikki Haley Asks India To Take Trump’s View On Russian Oil Seriously
“India must take Trump’s point over Russian oil seriously,” said Republican leader Nikki Haley, adding that New Delhi must work with the White House to find a solution, “sooner the better”. “Navigating issues like trade disagreements and Russian oil imports demands hard dialogue,” Haley posted on social media on Saturday (local time). She posted on X a portion of the opinion piece she wrote last week for Newsweek amid strain in ties between the two countries after President Donald Trump slapped 50% tariff on Indian goods. Haley has been facing criticism within her party for favouring India amid tariff tensions between the two countries. In her article Haley said, “Trump is right to target India’s massive Russian oil purchases, which are helping to fund Vladimir Putin’s brutal war against Ukraine.” However, she added that India must be treated like the “prized free and democratic partner that it is—not an adversary like China.”
How India’s Russian Oil Buys Stabilise Global Markets And How The West Quietly Benefits
Standing beside his Russian counterpart Sergey Lavrov in Moscow, External Affairs Minister S Jaishankar was unambiguous. “We are not the biggest purchasers of Russian oil, that is China,” he said, pushing back against what he described as a “perplexing” narrative from the West. Addressing media questions about US tariffs on Indian goods, Jaishankar defended India’s decision to import discounted crude from Russia as one driven by national interest, and more importantly, one that helped stabilise the global energy market. “We are a country where the Americans have said for the last few years that we should do everything to stabilise the world energy market, including buying oil from Russia,” Jaishankar stated, clearly suggesting that India was now being unfairly penalised for doing exactly what the West had informally endorsed. The comments come at a time when India finds itself at the centre of a geopolitical energy debate, triggered by Washington’s decision to double tariffs on Indian goods, now totalling 50 per cent, with an additional 25 per cent penalty imposed specifically over energy trade with Russia. The premise behind the penalty, that India is the “largest buyer” of Russian oil and thus fuelling Moscow’s war chest, has been repeatedly contested by New Delhi. Jaishankar, in Moscow,laid out the data: India is not the top importer of Russian oil (that would be China), not the biggest buyer of Russian LNG (that would be the EU), and not even the trade partner with the sharpest post-2022 surge in volume with Moscow.
Hydrocarbon hunt: India’s oil and gas churn is high risk, high return
Prime Minister Narendra Modi’s announcement on Independence Day of Samudra Manthan, a mission to accelerate domestic oil and gas exploration, could not have come at a more pressing hour for India. Global geopolitical trends and trade turmoil have turned the spotlight on measures to moderate the outflow of dollars through our single largest drain: oil and gas imports. We ship in close to nine-tenths of the crude barrels we need, even as local sales of petroleum products are growing at a 6-7% annual clip. Home output of crude, which has been unable to keep pace, must rise sharply if we are to move the needle on self-reliance.
CBG, LNG to drive India’s gas sector growth in next five years, says IGL’s Sanjeev Bhatia
City gas companies see compressed biogas (CBG) and liquefied natural gas (LNG) as the next big growth drivers in India’s clean energy transition, with the two sectors expected to “flourish in the next five to ten years,” Indraprastha Gas Limited (IGL) Executive Director Sanjeev Bhatia said at the PHDCCI Global Summit on Sustainability 2025. Speaking at the session on hard-to-abate sectors, Bhatia said that while India’s natural gas share in the energy mix is targeted to rise from 6.5 per cent to 15 per cent by 2030, domestic production is not keeping pace with demand, making alternatives like CBG critical. “The government has already mandated city gas distributors to invest in compressed biogas plants. IGL has been tasked to set up at least 10 such facilities, with one plant at Narela in Delhi expected to begin operations by October. This unit will produce four tonnes of gas per day from municipal solid waste,” he said. On LNG, Bhatia underlined the massive potential in India’s transport sector, comparing India’s 700 LNG-fuelled trucks to China’s 0.6 million. “If we can even convert a fraction of diesel trucks to LNG, pollution can be cut by 30 per cent,” he said.
Oil Prices Slide Further on Prospect of Peace in Ukraine
Crude oil prices declined today after the end of the Trump-Zelensky talks on Monday, in anticipation of trilateral talks that could result in a peace deal. That would likely also result in the lifting of sanctions on Russian crude, making more of its available on global markets. At the time of writing, Brent crude was trading at $66.20 per barrel and West Texas Intermediate was changing hands for $62.95 per barrel, after inching higher on Monday as the Ukrainian president arrived at the White House for talks with Trump. “Betting markets aren’t overly convinced that we’ll see a ceasefire before the end of the year,” ING commodity analysts said in a note following the meeting. Indeed, the surrender of the Donbass, most of which is already under Russian control, remains a no-no for Zelensky, it appears, while it also remains a hard condition for Russia. This mars the prospect of peace quite considerably unless both sides are willing to make concessions. “Polymarkets is showing a 38% chance of a ceasefire, well below the peak of 78% seen in March. The modest price action in the oil market this morning appears to fit with this view,” ING’s Warren Patterson and Ewa Manthey also wrote. Another related issue is the additional tariff that President Trump said he would impose on India as punishment for its purchases of Russian crude. The tariff comes into effect at the end of August. This means that negotiators from the U.S., Russia, and Ukraine have little time to make a deal that would avoid considerable disruption on world oil markets. An additional, if not too substantial, factor that limited the oil price slide was a Ukrainian attack on the Druzhba pipeline, which carries Russian crude to Hungary and Slovakia. The rate of deliveries is about 200,000 barrels daily.
What will be price of petrol, diesel if India stops importing oil from Russia
In a significant update amid the trade talks between India and the US and Donald Trump imposing an additional 25% tariff on India, taking the total tariff to 50% due to India’s continued crude oil purchase from Russia, reports are now talking about the inflationary impact if India stops buying oil from Russia. Notably, Russia become India’s largest oil supplier since the Russia-Ukraine war and is currently supplying 35% to 40% of India’s oil needs. Why Donald Trump imposed tariffs on India? In a massive action against India, the United States, under the leadership of Donald Trump imposed tariffs on India as India continued to purchase crude oil from Russia. In response to the move, India clarified its stand and said that it buys Russian oil because Europe stopped sourcing from Moscow. How much loss will India face if Russia cuts imports? As per experts, if India cuts Russian import of crude oil to India, India will have to rely more on costlier oil from West Asia, Africa, the US, and Latin America, which will pose technical, economic, and strategic challenges. More notably, the shifting could raise annual costs by Rs 250 – 400 billion for Indian refiners, which would ultimately hit the budgets of Indian consumers. Earlier, a SBI report has also indicated that the fuel bill might increase by USD 9 billion in FY26 and USD 11.7 billion in FY27 if Russia cuts its crude oil imports to India. However, the exact price in increase of Petrol and diesel cannot be predicted as it depends on several others factors including government taxes.
What has been the impact of ethanol blending
E20 petrol, which contains 20% ethanol and is being sold by Indian oil refiners, has been much in the news lately. India has achieved its target to blend 20% ethanol per litre of fuel five years ahead of the target under the National Policy on Biofuels. Ethanol blending in India rose from just 1.5% in 2014 to 20% in 2025, backed by the government’s strong fiscal incentives to the sugarcane industry. While the government says ethanol blending achieves a range of goals such as cutting greenhouse gas emissions, bolstering farmers’ incomes and reducing India’s oil import bill, its benefits to the environment require closer scrutiny. How are vehicle owners reacting to this change? Vehicles sold in India from 2023 come with E20 stickers, indicating compatibility with 20% ethanol blended petrol. Additionally, manufacturers have addressed the concerns of those who own older vehicles. Hero Motocrop says in its website, “The material composition such as rubbers, elastomers and plastic components that are directly exposed to fuel also need to be changed to E20 compatible materials.” However, according to LocalCircles, two in three petrol vehicle owners are against the E20 mandate. Only 12% of the 36,000 people surveyed across 315 districts are in favour of the switch. Critics cited a drop in mileage and increased maintenance costs. The survey urged the Union government to allow consumers to choose the type of fuel they want. While the Centre admitted to a “marginal drop” in engine efficiency, it said this “can be further minimised through improved engine tuning and use of E20-compatible materials.” Minister Hardeep Singh Puri has called the consumer angst a “vilification campaign” facilitated by “vested, economic interests”. While the Union government attempts to defend its E20 policy, its own think tank, the NITI Aayog, has urged the government “to compensate the consumers for a drop in efficiency from ethanol blended fuels”, by way of “tax incentives on E10 and E20 fuel”. According to the Minister, “since 2014-15 India has already saved more than ₹1400 billion in foreign exchange through petrol substitution.” But has the benefit been passed to the end consumer? An analysis by The Hindu showed that Coal India Ltd, Oil & Natural Gas Corporation (ONGC), Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Gas Authority of India Ltd collectively contributed ₹1270 billion, or 42.3% of the total ₹3000 billion dividends the Union government received from non-banking Public Sector Undertaking (PSUs) between 2020-21 and 2024-25. IOC and BPCL together saw a 255% rise in their dividend payouts since 2022-23 and a 65% decrease in oil prices. However, the two PSUs only passed on a 2% decrease in petrol prices to the public. What about the impact on agriculture? Sugarcane-based ethanol supply has grown from 400 million litres in FY14 to nearly 6.70 billion litres, derived from about 9% of total sugar output, in FY24. The Union government says it has paid “over ₹1200 billion to farmers” since FY15. But how environmentally friendly is India’s dependence on sugarcane for ethanol? About 60-70 tonnes of water is required to cultivate one tonne of sugarcane. Many sugarcane growing regions in India do not receive the 1,500 to 3,000 millimetre rainfall that is necessary for the crop’s optimal growth. This leads to groundwater extraction and unsustainable irrigation methods. A 2023 Central Groundwater Board report says that sugarcane growing districts in Maharashtra extract more groundwater than nearby regions. Distress among sugarcane growers in that State has been widely reported. Unsustainable agriculture practices accelerate land degradation. The Desertification and Land Degradation Atlas of India 2021 found that almost 30% of India’s land is degraded. The water intensive nature of sugarcane and the impact on ground water reserves at a time of extreme weather has been absent from the discussion on ethanol-blended petrol.
India’s Russian crude buying has to stop, US adviser Navarro says
White House trade adviser Peter Navarro said India’s purchases of Russian crude were funding Moscow’s war in Ukraine and had to stop, adding that New Delhi was “now cozying up to both Russia and China.” “If India wants to be treated as a strategic partner of the U.S., it needs to start acting like one,” Navarro wrote in an opinion piece published in the Financial Times. India’s Foreign Ministry has previously said the country is being unfairly singled out for buying Russian oil while the United States and European Union continue to purchase goods from Russia. U.S. President Donald Trump an additional 25% tariff on Indian goods earlier this month, citing New Delhi’s continued purchases of Russian oil, taking total tariffs on imports from India to 50%. “India acts as a global clearinghouse for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs,” Navarro said. The adviser also said it was risky to transfer cutting-edge U.S. military capabilities to India as New Delhi was “now cozying up to both Russia and China.” Longtime rivals China and India are quietly and cautiously strengthening ties against the backdrop of Trump’s unpredictable approach to both. Indian Prime Minister Narendra Modi is set to meet Chinese President Xi Jinping at the end of the month while Chinese Foreign Minister Wang Yi will visit India from Monday for talks on the disputed border between the two countries. A planned visit by U.S. trade negotiators to New Delhi from August 25-29 has been called off, a source said over the weekend, delaying talks on a proposed trade agreement and dashing hopes of relief from additional U.S. tariffs on Indian goods from August 27.
Natural Gas Could Be Angola’s Next Big Money Maker
Angola is betting big on natural gas developments as a short-term increase in oil production is not expected to last despite the West African country leaving OPEC over capped production. Companies operating in Angola have recently started up two oil projects, but they have also begun to target non-associated offshore gas plays, hoping that a massive gas resource could be waiting to be tapped. Despite the recent oil project startups, Angola’s oil production is expected to drop to about 1 million barrels per day (bpd) in 2027, from over 1.1 million bpd now, officials at the national oil and gas agency ANPG have told Reuters. At the same time, natural gas output is set to jump by 2030, per ANPG estimates. Increased gas output will raise Angola’s LNG exports as developers offshore Africa bet big on natural gas to export to Europe and Asia. A recent large gas discovery year could be one of many gas plays that could underpin a jump in LNG exports and state revenues from gas. Last month, Azule Energy, a joint venture of international majors BP and Eni, discovered a major natural gas reservoir offshore Angola in the first gas-targeting exploration well in the oil-producing country. Initial assessments suggest gas volumes in place could exceed 1 trillion cubic feet, with up to 100 million barrels of associated condensate, Azule Energy said, adding that these results “confirm the presence of a working hydrocarbon system and open new exploration opportunities in the area.” Azule Energy CEO, Adriano Mongini, commented: “This is a landmark moment for gas exploration in Angola. Gajajeira-01 is the country’s first dedicated gas exploration well, and its success reinforces our confidence in the potential of the Lower Congo Basin.” More recently, Mongini told Reuters that “Given that Angola has a couple of prolific basins, I can imagine that we will be able to find much more reserves of gas.” BP’s EVP production & operations, Gordon Birrell, highlighted the Angola discovery and its potential on the Q2 earnings call. “Under the Azule brand, we had a discovery in Gajajeira in block 1/14, pretty close to shore, very developable. So West Africa remains an exciting area for us in terms of exploration,” Birrell told analysts. The exciting gas discovery comes as Angola struggles to materially boost oil production even after exiting OPEC in January 2024, following a spat with the OPEC and OPEC+ members about production quotas. Angola’s oil production peaked in 2008 at about 2 million bpd. Output has declined in recent years, due to underinvestment in offshore resources due to higher development costs, which have prompted many companies to overlook the African oil producer as an investment destination. Azule Energy and TotalEnergies started up new oil projects last month, but these may not be enough to offset a decline in maturing fields. Azule Energy announced at the end of July the successful startup and first oil production from the Agogo FPSO. Combined, the Agogo and the Ndungu fields have estimated reserves of about 450 million barrels, with projected peak production of 175,000 barrels per day, produced via two FPSOs (Agogo and Ngoma). Also at the end of July, TotalEnergies launched oil production from the BEGONIA and CLOV Phase 3 offshore projects via subsea tiebacks to FPSOs to add a total of 60,000 barrels a day of new production. Still, Angola’s oil revenues have dropped this year due to falling oil prices. Revenues from oil declined by 4% from the first quarter to $5.6 billion in the second quarter, according to government data. LNG and gas exports meanwhile, earned $755 million in the second quarter. Now the BP-Eni Azule venture is close to launching first gas from the New Gas Consortium (NGC) project after completing early this year the Quiluma and Maboqueiro offshore platforms in a “significant step forward in Angola’s first non-associated gas development.” The NGC project is a joint venture between Azule Energy, Sonangol E&P, Chevron, and TotalEnergies. “Development of (NGC’s) Quiluma and Maboqueiro fields, due to launch around end-2025, is the real litmus test for gas monetisation in Angola,” Jimmy Boulter, an analyst at Enverus, told Reuters.