India Open to Importing More LNG from US

India is open to importing more LNG from US if the price is right, Indian oil minister Dharmendra Pradhan told journalists in Houston March 6. For crude oil imports, he said “if we get good terms at reasonable price we are open to anybody.” India imports most of its crude oil from the Middle East and Latin America.

Indian Gail has a 20-year 3.5mn mt/yr contract with Sabine Pass Liquefaction. The supplies are expected to commence later this year. Qatar remain India's biggest LNG supplier. 

Pradhan reiterated that the government is seriously looking to lift the share of gas in India’s energy mix from 7% to 15% in next few years and is investing in gas pipelines, LNG import terminals and city gas distribution networks. LNG as marine fuel, long haul fuel and city transportation fuel is also being encouraged. The minister said very soon the government will introduce LNG as transport fuel. “All technical aspects have been studied by competent authorities,” he said.

Late last year, India's biggest commercial vehicle manufacturer Tata Motors in conjunction with Petronet LNG and Indian Oil Corporation launched the country's first LNG powered bus in the southern Indian city of Kochi. 

New hydrocarbon policy unveiled

Pradhan also unveiled a new hydrocarbon exploration licensing policy (HELP), which offers single license to explore conventional and unconventional oil and gas resources and a revenue sharing model. It also provides pricing and marketing freedom for crude oil and natural gas.

The new policy will enhance domestic oil and gas production, bring substantial investment in the sector, Pradhan said adding that the aim is to double domestic natural gas and oil production in next five years.

Shardul Sharma