American energy giants, including Exxon and Chevron, are eyeing significant investments in India’s gas infrastructure and direct product sales, as the country’s natural gas market continues to expand. An anonymous industry source stated, “The gas space in India has been growing significantly, with the government’s plans to increase natural gas adoption attracting global interest.” This interest coincides with US demands for India to reduce its reliance on Russian energy imports while boosting American gas supplies.
As the world’s fourth-largest liquefied natural gas (LNG) importer, India currently sources approximately half of its natural gas needs from the US and Qatar. Both nations are ramping up LNG production capacity, and analysts predict a potential oversupply of LNG by 2028. The Indian government aims to increase the share of gas in its energy mix from about 7% to 15% by 2030, indicating a promising opportunity for new entrants in the market.
To date, US companies have primarily supplied LNG to major Indian firms like IndianOil Corp. and GAIL (India) Ltd. However, their planned entry into the gas infrastructure sector may create competition with public sector entities in India. “Discussions about US companies’ interest are taking place among relevant stakeholders and line ministries to explore setting up oil and gas facilities in India,” mentioned another source who requested anonymity.
Queries directed to ExxonMobil, the US embassy in New Delhi, and the Indian ministries of petroleum and commerce did not receive responses by the time of publication. A Chevron spokesperson noted, “We do not comment on market rumors and speculation as a matter of long-standing policy.”
Gaurav Moda, partner and leader for energy at EY-Parthenon India, emphasized the importance of diversifying energy sources to meet India’s rising demand. “While increased competition could be seen as a challenge for incumbent players, the entry of more global stakeholders could help develop the market, especially as India’s gas sector is still evolving,” he explained.
In related news, US-India trade discussions have resumed following President Donald Trump’s imposition of a 50% tariff on some Indian exports. The US has urged India to commit to reducing Russian oil imports, a critical point for finalizing a trade agreement. Despite increasing imports from the US, Indian refiners continue to source oil from Russia.
“Talks are proceeding, and Indian negotiators are in discussion with their US counterparts to pave the way for a mutually beneficial bilateral trade agreement,” the first anonymous source added.
Currently, India operates seven LNG terminals with a combined capacity of 47 million metric tonnes per annum (mmtpa), supported by approximately 25,000 km of gas pipelines. These facilities include terminals at Dahej and Kochi, managed by Petronet LNG, as well as others operated by major global and domestic entities.
The Petroleum and Natural Gas Regulatory Board (PNGRB) indicates an additional 10 mmtpa capacity is nearing completion, with several more projects under planning. “The completion of these expansions will require significant pipeline infrastructure and capital investments,” the report stated.
From January to August this year, India imported about 16 million tonnes of LNG, a cleaner alternative to crude oil and coal, reflecting a 10% increase year-over-year, according to data compiled by Bloomberg. The US ranks among the top three LNG suppliers to India, alongside Qatar and the UAE. Union Petroleum Minister Hardeep Singh Puri recently announced plans to boost LNG import capacity by 27% to 66.7 million metric tonnes by 2030.
As India seeks to strengthen its energy trade ties with the US, Crown LNG, a Nasdaq-listed infrastructure firm, is accelerating its operations in the country, constructing an offshore terminal near Kakinada in Andhra Pradesh. This move underscores the burgeoning opportunities within India’s gas landscape, poised for significant growth in the coming years.
Original Source: https://www.livemint.com/news/exxonmobil-chevron-lng-india-gas-infrastructure-space-us-trade-talks-trump-tariffs-russian-oil-gail-11759233677579.html
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Publish Date: 2025-10-01 05:30:00
