India can lessen reliance on Russian oil if US emerges as key supplier
US President Donald Trump’s recent proposal to sell more oil and gas to India could significantly reduce New Delhi’s purchases of discounted Russian oil, thought to be funding Moscow’s war with Ukraine. Analysts expect Delhi to welcome the move by Washington, which could induce Russia to sell its oil at market rates. India and China are among the top buyers of cheap Russian oil.“Russian oil will remain important [for India] but the wartime surge will decline soon enough. The US will fill that gap,” said Uday Chandra, a political scientist at Georgetown University. Trump has suggested he would meet Russian President Vladimir Putin this week, raising hopes that negotiations could end three years of fighting in Ukraine. India, which imports 85 per cent of its oil needs, has increasingly relied on supplies of discounted Russian oil in recent years. From less than 1 per cent before the Ukraine war, Russia later accounted for 40 per cent of India’s oil imports. But its share is estimated to have dropped to 25-30 per cent since the US imposed fresh sanctions on entities transporting Russian oil late last year. Russia’s share of Indian oil imports could drop to 15-20 per cent in the near term, given Trump’s plan to sell more US oil to India to reduce a trade deficit between the two countries, Chandra said. Trade between India and the US totalled US$118 billion in the 2024 financial year, with the South Asian country recording a surplus of US$32 billion.
BPCL expects to get gas from Mozambique LNG project by 2029, says CMD
Bharat Petroleum Corporation Ltd (BPCL) expects receiving gas from the Mozambique project by early to mid-2029 if the liquefied natural gas (LNG) project resumes operations this calendar year, chairman and managing director G Krishnakumar has told Moneycontrol. “There was a force majeure in Mozambique. We are hopeful that it will resume but the operator is also waiting Exim Bank loan to be sanctioned. So, once that is done, we are hopeful that this year (2025)— by the middle or end of this year—it will resume and gas will start coming by early or middle of 2029,” he said Earlier this month, the CEO of TotalEnergies, the lead operator of the $20-billion project, said financing from the US Export-Import Bank (EXIM) Bank is expected to be approved soon, following which the force majeure on the LNG project would be lifted. TotalEnergies halted the LNG project in 2021 following attacks by Islamic State terrorists.
ONGC is accelerating expansion with billion-dollar deals to secure India’s energy future
Oil & Natural Gas Corporation Ltd (ONGC), which contributes around 70% of India’s crude oil and approximately 84% of its natural gas production, is on an aggressive expansion drive to reinvent itself and remain a key contributor to India’s energy security. Last week, ONGC entered into a series of major deals in this direction. On February 12, NGC NTPC Green Private Limited (ONGPL), a 50:50 joint venture between ONGC Green Limited (OGL) and NTPC Green Energy Limited (NGEL), acquired Ayana Renewable Power for ₹195 billion (USD 2.3 billion) in one of the largest recent deals in India’s energy sector. On the same day, ONGC Videsh Ltd., a wholly owned subsidiary of ONGC, teamed up with energy major Petróleo Brasileiro S.A. (Petrobras) to assess opportunities in upstream, marketing, decarbonisation, and low-carbon solutions, among other areas. A day later, ONGC and bp, one of the largest international energy companies, signed a contract under which bp will serve as the Technical Services Provider (TSP) for the Mumbai High field, India’s largest and most prolific offshore oil field. Additionally, ONGC partnered with Tata Power Renewable Energy Limited (TPREL), a subsidiary of The Tata Power Company Limited, to explore collaborative opportunities in the Battery Energy Storage System (BESS) value chain. On February 15, the State Oil Company of the Azerbaijan Republic (SOCAR), ONGC, and its subsidiary Mangalore Refinery and Petrochemicals Limited (MRPL) signed a non-binding Memorandum of Understanding (MoU) to explore strategic opportunities in the energy sector. The MoU outlines collaboration in the supply of crude oil and liquefied natural gas (LNG), the sale and supply of petroleum products, exploration of trading opportunities, and capacity building through knowledge exchange. GREEN ENERGY PUSH ONGC, predominantly a fossil fuel operator, is now aiming for a greener future. As of FY24, it had only 193 MW (megawatts) of green energy—153 MW from wind and 40 MW from solar. With an investment of ₹1000 billion, ONGC plans to reach 10 GW, with 60-70% from solar and 30-40% from wind. Other green initiatives include 25 biogas plants, 2 GW of pumped hydro, 1 MMTPA (million metric tonnes per annum) of green ammonia, and 180 kilotonnes of green hydrogen. In FY25, the plan was to add only 1 GW of assets with an investment of ₹10 billion, but the task was expedited with the Ayana acquisition. ONGC aims to achieve net zero by 2038. Acquired from the National Investment and Infrastructure Fund (NIIF), British International Investment Plc (BII) and its subsidiaries, and Eversource Capital, Ayana has approximately 4.1 GW of operational and under-construction assets. This acquisition marks ONGPL’s first strategic investment since its inception in November 2024. “The acquisition of Ayana Renewables is a strategic decision by ONGC Green Ltd and NTPC Green Energy Ltd to accelerate the momentum toward a clean energy revolution. It marks a historic milestone in our journey toward a sustainable energy future,” said Sanjay Mazumdar, CEO of ONGC Green Limited. ONGC, which discovered 8 out of India’s 9 producing basins—including the latest Vindhya basin—has struggled to improve production in recent years despite increased exploration and production (E&P) spending. Its crude oil production remained stagnant in FY23 and FY24, at 18.449 MMT and 18.14 MMT, respectively. The standalone crude oil production (excluding condensate) during Q3 FY25 was 4.653 MMT, registering a growth of 2.2% over the corresponding quarter of FY24. Similarly, standalone crude oil production during the first nine months of FY25 was 13.858 MMT, reflecting a 1.2% increase over the same period in FY24. Gas production also remained stagnant at 19.969 billion cubic meters (BCM) and 19.316 BCM, respectively. Standalone natural gas production during Q3 FY25 was 4.978 BCM, registering a growth of 0.3% over Q3 FY24. While ONGC faces production challenges, India’s crude oil demand continues to rise. In FY24, India imported 232.5 MMT of crude oil, nearly the same as the 232.7 MMT imported the previous year. As the world’s third-largest consumer of crude oil, India has an import dependency of over 85%. According to research agency IBEF, crude oil consumption is expected to grow at a CAGR of 4.59% to 500 MMT by FY40. Similarly, India’s natural gas consumption is projected to increase by nearly 60% to 103 BCM annually, requiring gas imports to double by 2030, according to the International Energy Agency (IEA).
More than happy to buy more US gas; can buy Russian oil via clean channel’: IOC Chairman Arvinder Singh Sahney
India’s largest refiner and fuel retailer Indian Oil Corporation (IOC) is optimistic about the prospects of higher energy imports from the US, particularly natural gas imports amid rising gas consumption in the country. And while IOC is also keen to step up purchases of American crude, volume growth shall be contingent upon how competitively it is priced, since high freight charges remain a concern, according to the company’s Chairman ARVINDER SINGH SAHNEY. Regarding the outlook on oil imports from Russia in the wake of the sweeping US sanctions against Moscow’s oil trade, IOC is willing to buy Russian crude as long as the transactions are “clean” and do not carry sanctions-related risk.
GAIL and Cummins forge partnership to advance hydrogen and energy transition
GAIL (India) Limited, a Maharatna CPSE under the Ministry of Petroleum & Natural Gas, has signed a memorandum of understanding (MoU) with Accelera by Cummins to collaborate on hydrogen and energy transition technologies in India. The agreement, signed at India Energy Week 2025, focuses on exploring opportunities in hydrogen production, blending, transportation, and storage. By leveraging GAIL’s extensive natural gas infrastructure and Cummins’ expertise in clean energy solutions, the partnership aims to accelerate India’s hydrogen economy. GAIL’s push for clean energy and hydrogen integration GAIL has been actively investing in hydrogen projects to support India’s clean energy goals. In April 2024, the company commissioned a 10 MW green hydrogen plant in Vijaipur, Madhya Pradesh, using an electrolyser supplied by Accelera by Cummins. As part of its hydrogen strategy, GAIL has also been blending hydrogen into city gas distribution networks through its joint venture Avantika. The company successfully achieved a 5% hydrogen blend in pipeline natural gas during pilot-scale studies. To reinforce its commitment to sustainability, GAIL has revised its Scope 1 and Scope 2 net-zero targets from 2040 to 2035. This shift reflects the company’s increasing focus on reducing carbon emissions and transitioning towards a cleaner energy mix.
Trump is pushing India to buy more American gas – could Russia’s be the better choice?
As New Delhi seeks to diversify its LNG supply, both Moscow and Washington are courting the country to secure major deals. One of the outcomes of Prime Minister Narendra Modi’s recent visit to Washington this week is an expansion of energy cooperation with the US under the India-US Comprehensive Global Strategic Partnership. In a joint statement, Modi and President Donald Trump reaffirmed their resolve to strengthen bilateral energy trade, positioning the US as a key supplier of crude oil, petroleum products, and LNG to India. When Prime Minister Narendra Modi unveiled his vision for a gas-based economy in 2016, it wasn’t just an economic shift but strategic maneuver aimed at reducing pollution, diversifying energy sources, and securing long-term energy stability while preserving strategic autonomy. As 2025 unfolds, India stands at a critical juncture as the global energy landscape is becoming increasingly complex. The United States is ramping up its natural gas exports, potentially adopting a more aggressive energy policy following Donald Trump’s return to the White House. Meanwhile, Russia, a long-standing oil supplier to India, continues to face US-led sanctions, complicating the energy trade. India aims to increase natural gas’s share in its energy mix from the current 6.2% to 15% by 2030. This ambitious target is driven by the need to reduce carbon emissions and diversify its primary energy sources. The International Energy Agency forecasts that India’s natural gas consumption will rise by nearly 60%, reaching 103 billion cubic meters annually by 2030. With LNG imports currently meeting around 50% of its gas demand, India faces a significant vulnerability in its energy security. By 2030, India’s LNG imports are projected to double to approximately 65 bcm annually, making it the fourth-largest LNG importer globally. This heavy reliance exposes the country to price volatility, supply chain disruptions, and geopolitical risks. LNG competition The renewed engagement between Washington and New Delhi could open avenues for India securing long-term LNG contracts, deepening technology collaborations, and attracting investments in oil and gas infrastructure. The evolving US-India energy equation not only enhances India’s energy security but also aligns with New Delhi’s ambition to transition toward a gas-based economy, balancing economic competitiveness with strategic autonomy.
India launches biggest oil and gas bidding round under OALP at Energy Summit
Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Tuesday, February 11, launched the 10th round of bidding for oil and gas assets under the Open Acreage Licensing Policy (OALP) at the India Energy Summit 2025. This round marks the largest bidding exercise in terms of acreage offered under the Hydrocarbon Exploration and Licensing Policy (HELP) regime. A total of 25 blocks, spanning approximately 1,91,986.21 square kilometres across 13 sedimentary basins, have been opened for bidding. Notably, 16 of these blocks, covering 97,919.6 square kilometres—about 51% of the total area—were previously designated as ‘No-Go’ zones, areas where exploration was restricted in the past. The bid round primarily focuses on offshore assets, with 19 of the 25 blocks located offshore, covering 1,75,115 square kilometres. Of these, 13 are situated in deep-water and ultra-deep-water regions, accounting for 1,33,724 square kilometres. The remaining blocks include six on land, six in shallow water, one in deep water, and 12 in ultra-deep water. Based on geological potential, the blocks are categorised into Category-I (9 blocks), Category-II (11 blocks), and Category-III (5 blocks).
India To Launch Oil And Gas Licensing Rounds
India is set to launch new rounds for oil and gas block licensing this week, Oil Minister Hardeep S. Puri announced on Monday. Puri also indicated that energy supply issues are expected to be a key topic during Indian Prime Minister Narendra Modi’s upcoming meeting with US President Trump later this week. Given India’s increasing demand for crude oil and natural gas, discussions may focus on securing long-term energy partnerships and exploring new avenues for collaboration between the two nations. “I will be surprised if sourcing of energy will not figure during the discussion,” Puri said. The United States has emerged as a major supplier of crude oil and liquefied natural gas (LNG) to India in recent years, and any agreements or commitments made during the talks could have wider implications for global energy markets.
India importing crude from 40 countries; Argentina is new supplier: Hardeep Puri
Petroleum minister Hardeep Puri on Monday said that India is open to importing crude oil from all possible sources to meets its demand. Addressing a press conference a day ahead of the India Energy Week 2025, the Union minister recalled how India diversified its crude imports from 27 countries to 40 countries. Argentina is the new addition, he told reporters. “From 27 suppliers, we have now 40 suppliers. We added another Argentina the other day. So we’ve got imports from 40 countries,” he said. The imports from those suppliers though vary based on price advantage or in some instance because of proximity advantage. US, Russia, Saudi Arabia, UAE, and Iraq are among the big suppliers of crude to India. “It’s a very dynamic situation, but we are open to imports from all sources,” he added. India depends on imports for over 80 per cent of its crude oil requirement. Various steps have been taken by the government to increase the production of domestic crude oil and bring down imports. The government is promoting usage of natural gas as fuel/feedstock across the country towards increasing the share of natural gas in economy and moving towards gas based economy, promotion of renewable and alternate fuels like ethanol, second generation ethanol, compressed bio gas and biodiesel.
Oil Prices Remain Under Pressure From Trade War Fears
Crude oil prices were set to end the week with a third consecutive decline as worry about the effect of Trump’s tariffs and China’s retaliation to them dragged benchmarks down. At the time of writing, oil was slightly up from Thursday, with Brent crude at $74.69 a barrel and West Texas Intermediate at $70.92 per barrel, but both were lower than they were on Monday, by over 2%. The slide in prices followed the introduction of a 10% tariff on all Chinese imports into the United States, which prompted China to respond in kind, slapping a 10% import duty on U.S. crude and a 15% tariff on liquefied natural gas. A Thursday announcement by the Department of Treasury that it would sanction several people and vessels carrying Iranian crude oil abroad somewhat limited the downward pressure on oil prices but the impact of the move is yet to manifest in full. “Oil prices saw some stability return this morning following a volatile session overnight, as traders react to news of U.S. sanctions on Iranian crude exports to China,” IG analyst Yeap Jun Rong told Reuters. “Nevertheless, (today’s) oil gains are limited, reflecting persistent concerns over supply and demand headwinds, including the potential for increased production from OPEC+ and the US, as well as tariff risks weighing on global oil demand,” he added. ING commodity analysts, meanwhile, revised their general expectations about oil prices in 2025 this week, noting that “The supply risks facing the market due to sanctions mean that the floor for oil prices is probably a little higher than we had expected coming into this year. However, much will depend on how trade relations progress. A tougher stance from the US on trade will be a concern for global growth.” BMI analysts pointed out the prospect of a full-blown trade war as a source of price pressure on oil as such a development could weaken demand for the commodity.