India’s energy agreement with the US is likely to jump by over 40 percent to $10 billion in 2019-20, as the world’s third-largest oil consumer looks to move away from its usual suppliers in the Middle East, Oil Minister Dharmendra Pradhan stated on both the requirement and the opportunity for the two nations to lift two way energy ties to a new level.
India, on October 2017, started receiving crude oil from the US, and on March 2018, it got the first shipment of liquefied natural gas (LNG) from there.
Since the past year, the import of US crude oil has become two times, and New Delhi is now closing on the biggest long-term LNG import trade. “In 2018-19, total imports of crude oil, LNG and coking coal was at $7.2 billion. In the current year 2019-20, this may increase to $10 billion,” Pradhan stated at US-India Strategic Partnership Forum’s Annual Leadership Summit here.
In a short period, the US has become one of the top 10 suppliers of crude oil for India and also a vital source for LNG. For the US, India is now the fourth-biggest importer of crude oil and the third-largest for LNG.
“Indian companies already invested in oil and gas assets in the US, and I see an increasing interest among our companies to invest in gas assets in the US. In fact, the energy sector has become an important part of the bilateral strategic partnership,” he stated. While India sources about 65 percent of its raw oil needs from the volatile Middle East region, imports from the US have become two times more to over 13 million tonnes this year.