India signs agreement with the USA to import 2.2 million tons of LNG for 2024
State-run oil refineries in India have signed their first long-term agreement with the USA to import 2.2 million tons of liquefied natural gas (LNG) in 2024.
The joint tender for the procurement of American supplies was announced by leading refiners Indian Oil Corp., Bharat Petroleum Corp., and Hindustan Petroleum Corp. According to India’s oil minister, Hardeep Puri, the agreement will enable the country—the second-largest LNG consumer in the world—to receive nearly a tenth of its imports from the US Gulf Coast.
Before signing the agreement, representatives of the three Indian refineries visited the USA for negotiations. Hardeep Puri noted that the supply prices will be set against the Mont Belvieu benchmark, which is a significant increase compared to the last year when the USA’s share in India’s imports was less than 0.6%.
The main LNG suppliers to India remain Qatar, the UAE, and Saudi Arabia. The current agreement with the USA is seen as part of a broader strategy to diversify supplies and strengthen economic ties with America. In particular, India is negotiating a trade agreement with the USA to reduce tariffs imposed by President Donald Trump’s administration.
According to the long-term contract, Phillips 66 will supply two shipments of LNG per month, while Chevron and TotalEnergies will provide one shipment each. Such an agreement could reduce India’s dependence on gas supplies from Russia amid anti-Russian sanctions and ongoing trade negotiations with the USA.
| Company | Number of shipments per month |
|---|---|
| Phillips 66 | 2 shipments |
| Chevron | 1 shipment |
| TotalEnergies | 1 shipment |
