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.
ADNOC Secures Major LNG Supply Deals with Chinese Buyers
China’s ENN Natural Gas and state-run Zhenhua Oil have each signed long-term liquefied natural gas (LNG) supply agreements with the Abu Dhabi National Oil Company (ADNOC), expanding the UAE’s energy footprint in Asia. ENN Natural Gas announced on Saturday that it will receive 1 million metric tons of LNG annually from ADNOC for 15 years—marking the Emirati company’s largest LNG deal with a Chinese buyer. ENN said the agreement will boost energy supply security and diversify its sourcing. The Shanghai-listed company, which owns a 34.28% stake in ENN Energy, is also planning to acquire the remaining shares for $7.65 billion. Zhenhua Oil, meanwhile, signed its first long-term LNG contract with ADNOC, a five-year deal beginning in 2026. It covers up to 12 cargoes annually, delivered to the company’s under-construction terminal in Rudong, Jiangsu province, expected to begin operations in early 2026. Pricing is tied to both the Japan Korea Marker and Brent crude benchmarks, according to a source familiar with the matter. These deals were signed during ADNOC CEO Sultan Al Jaber’s visit to Beijing, where he opened the company’s new Chinese office. During the visit, ADNOC reportedly signed three LNG supply agreements with Chinese firms, though details remain undisclosed. Zhenhua and ADNOC already cooperate in Abu Dhabi, and these new deals mark a significant expansion of their partnership into LNG. Both firms did not issue statements over the weekend.
India’s oil basket price at 47-month low of $68.34 a barrel in April
The average price of the Indian basket of crude oil has fallen to a 47-month low of $68.34 per barrel so far in April. This marks a 5.6 per cent drop from March’s $72.47 per barrel, and is the lowest level since May 2021, when global prices plummeted amid the economic turmoil triggered by the Covid-19 pandemic, according to data from the Petroleum Planning and Analysis Cell (PPAC). In 2023-24, the ratio of sour grades, such as Oman and Dubai, reached their highest levels in relation to sweet Brent grades in the basket, government data shows. The Indian crude basket is a derived blend comprising sour grade (Oman and Dubai average) and sweet grade (Brent Dated) crude oil, processed in domestic refineries, with the current ratio standing at 78.50:21.50. Last year, the Parliamentary Standing Committee on Petroleum underscored the need to diversify India’s crude oil imports by sourcing a wider range of grades, with the aim of bringing down the cost of the Indian basket. The price remains elevated in part because Middle East crude typically commands a higher rate due to the so-called Asian premium — an additional charge imposed by the Organization of the Petroleum Exporting Countries (Opec) on sales to Asian nations over and above the actual selling price, the standing committee noted. However, the petroleum ministry maintained that the selection of crude oil grades for import is driven by the technical and economic competitiveness of each option.
CNG & LNG Commercial Vehicle Market Poised for Rapid Expansion by 2032 – Persistence Market Research
The global shift toward greener transportation is driving rapid growth in the CNG (Compressed Natural Gas) and LNG (Liquefied Natural Gas) commercial vehicle market. With rising environmental concerns and a collective push to reduce carbon emissions, both government bodies and commercial vehicle manufacturers are increasingly investing in sustainable fuel alternatives to diesel and petrol. Natural gas-powered vehicles-especially CNG and LNG trucks and buses-are proving to be an effective transitional solution until electric commercial vehicles become more cost-effective and widely viable. In particular, long-haul transportation and logistics operators are turning to LNG commercial vehicles for their range and efficiency, while CNG vehicles are dominating urban and regional distribution due to their affordability and widespread fuel availability. Governments across the globe are actively supporting this shift through subsidies, policy reforms, and infrastructure investment, further boosting adoption.
Beijing Warns Against U.S. Trade Deals That Harm Chinese Interests
The U.S.-China trade war took another turn toward escalation on Monday as China threatened to retaliate against countries which make trade deals with the United States that would hurt Beijing’s interests. “Appeasement cannot bring peace, and compromise cannot earn one respect,” a spokesperson for the Chinese Commerce Ministry said on Monday. “China firmly opposes any party reaching a deal at the expense of China’s interests. If this happens, China will never accept it and will resolutely take countermeasures,” the world’s second-largest economy said. Since President Donald Trump took office earlier this year, the United States and China have been on a collision course in trade. The U.S. Administration, which has halted until July tariffs on other countries except China, is reportedly planning to use bilateral trade and tariff talks to have them limit their trade and deals with China, The Wall Street Journal reported last week, citing sources familiar with the ongoing negotiations. According to the Journal’s report, the Trump Administration is seeking to have countries commit to limiting their trade with China and isolate the world’s second-largest economy in exchange for tariff relief. China now vows retaliation against countries that cave to U.S. pressure to seek to isolate Beijing. “The United States has abused tariffs on all its trading partners under the banner of so-called “reciprocity”, while at the same time forcing all parties to start so-called “reciprocal tariff negotiations” with it,” the spokesperson for the Chinese Commerce Ministry said today. China blamed the U.S. for what it described as “unilateral bullying in the economic and trade fields under the guise of ‘reciprocity’”. “Once international trade returns to the “law of the jungle” where the strong prey on the weak, all countries will become victims,” China said. The U.S.-China trade war and concerns about global economic growth and a possible recession in the world’s top oil consumer, the United States, resurfaced early on Monday and dragged oil prices down by 2% at Asian trade open.
Oil Prices Begin the Week With a Dip
Crude oil prices began trade this week with a decline amid diminished hopes for a quick end to the war in the Ukraine and the prospect of lower demand amid the tariff turmoil. News of nuclear deal negotiations between the United States and Iran contributed to the trend. At the time of writing, Brent crude was trading at $66.83 per barrel and West Texas Intermediate was changing hands for $63.58 per barrel. “The broader trend remains tilted to the downside, as investors may struggle to find conviction in an improving supply-demand outlook, especially amid the drag from tariffs on global growth and rising supplies from OPEC+,” IG analyst Yeap Jun Rong told Reuters. The majority of international market observers believe the tariff-driven rearrangement of global trade flows will affect demand for crude oil negatively, even as a number of Asian energy importers seek to buy more U.S. oil as part of efforts to reduce their trade surpluses with the United States to avoid punishing tariffs. Meanwhile, a second round of U.S.-Iran talks concluded this weekend with the two sides indicating progress had been made. “Today, in Rome, over four hours in our second round of talks, we made very good progress in our direct and indirect discussions,” one senior Trump administration official said, as quoted by CNN. “I can say that there is movement forward. We’ve reached better understanding and agreement on some principles and goals in these Rome negotiations,” Iran’s Foreign Minister, Abbas Aragchi said. OPEC+’s decision to add 411,000 bpd in daily supply from May continued to weigh on prices despite suggestions it may be later reconsidered and despite an intention on the part of the group’s leadership to get production control laggards in line by enforcing compensation output cuts. The top overproducers, Iraq and Kazakhstan, earlier this month submitted updated plans for compensatory cuts to their oil production after failing to keep their quotas for months.