India Preps Plan for Oil Trade Boost With US

India is developing a three-pronged strategy to strengthen its petroleum trade with the US, focusing on long-term crude oil purchases, liquefied natural gas agreements and building strategic oil reserves in America, officials said on Friday.

- Rajeev Jayaswal

NEW DELHI:

The initiative follows discussions between Prime Minister Narendra Modi and President Donald Trump aimed at expanding bilateral energy trade, two senior officials who asked not to be named said.

The plans include revitalising the US-India Strategic Energy Partnership (SEP), established in April 2018, which had shifted away from fossil fuels during President Joe Biden's administration, the officials added.

US Energy Information Administration (EIA) data shows the impact of previous bilateral energy cooperation, with monthly American crude exports to India surging from 524,000 barrels in April 2018 to 10.4 million barrels by June of that year.

Exports peaked at 21.6 million barrels in December 2021 before declining to 2.9 million barrels in December 2023.

Indian state-run energy firms are actively considering increased imports of both crude oil and LNG from the United States, anticipating the Trump administration's policies will boost American oil output and maintain lower global oil prices, according to the officials.