Why is India increasing oil and gas imports from the US?

India is preparing to significantly increase oil and gas imports from the United States as part of a strategic energy strategy, while reducing purchases from Russia.

What is happening with India's oil imports from Russia?

India's state refiners are set to sharply cut fresh orders for Russian crude, with existing contracted cargoes expected to be delivered by March.

How is India diversifying its energy sources?

India is increasing oil and gas imports from the US and has also diversified its liquefied petroleum gas (LPG) sourcing by signing a deal with US exporters.

Home / Business and Economy / India Pivots: US Oil Surges as Russia Imports Dip

India Pivots: US Oil Surges as Russia Imports Dip

5 Feb

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Summary

India plans significant increase in oil and gas imports from the US.
State refiners will absorb higher freight costs for US shipments.
Russian crude orders are being cut, with existing contracts to be delivered by March.

India Pivots: US Oil Surges as Russia Imports Dip

India's energy landscape is set for a significant transformation as the oil ministry and state-run companies prepare to substantially increase imports from the United States. This strategic pivot coincides with an anticipated sharp reduction in crude oil purchases from Russia.

Senior executives from state-owned refiners and gas marketers recently met with ministry officials to evaluate the potential for increased crude and natural gas sourcing from the US. This initiative aligns with a previous commitment to raise energy imports from the US to $25 billion. Already, US crude shipments to India have seen a considerable rise.

Refiners are expected to manage the adjustment, even if it means covering additional freight costs. While US crude offers competitiveness when discounts to Brent are sufficient, the shift away from Russia involves cutting fresh orders, though imports will not cease entirely. Existing contracted Russian cargoes are scheduled for delivery by March.