Experts Raise Concerns Over Cost Viability of US Supply of Oil, LNG

WITH the US pushing for significantly increasing its oil and gas supplies to India, experts have questioned the cost viability of the proposal.

- RAKESH KUMAR @ New Delhi

They said the US, currently India's fifth-largest crude oil supplier, may become a costly import option for Indian refiners due to higher landing costs as against traditional suppliers in Central Asia or Russia, which offer significant discounts. However, they still see possibilities of increasing imports from the North American country.

Gaurav Moda, partner and Leader of the Energy Sector, EY-Pantheon, says that increasing crude imports from the USA is possible, as it was done earlier with aligned interests. According to him, LNG can be sourced more quickly, but sourcing WTI crude requires more effort.