Public sector oil, gas cos weigh term pacts; no formal talks yet

US push to sell more energy to India coincides with stable global crude, LNG prices

- SUBHAYAN CHAKRABORTY

Notwithstanding a recent uptick in the purchase of crude oil and natural gas from the US, officials from several public-sector energy companies said that any formal talks for potential long-term contracts remain some time away. While the presidential administration of Donald Trump is keen on India negotiating term contracts with US producers, both Indian oil-marketing companies (OMCs) and gas importers said they are still weighing their options.

A sudden push to raise energy imports from the US comes at a time when spot prices for liquefied natural gas (LNG) are set to begin falling soon due to new volumes coming online, while Brent crude prices hit a three-year low earlier in March owing to fears of an impending trade war hitting industrial demand. As a result, officials at state-run companies remain in a wait-and-watch mode.