Indian Oil Corporation is in discussions to agree on a long-term supply deal with U.S. Cheniere Energy for up to 2 million metric tons of LNG per year, beginning in April 2027. This potential deal comes as Indian buyers seek to secure more U.S. LNG to avoid tariffs imposed by President Donald Trump, and follows the end of the Biden pause on permits for new LNG export projects.
Indian Oil Corporation is in discussions to agree on a long-term supply deal with U.S. Cheniere Energy, in what could be one of many new LNG supply agreements between India and America. Indian Oil, the state oil and gas and refining giant, is negotiating a 15-year agreement to source LNG from Cheniere, the top U.S. exporter, a source at Indian Oil told Reuters on Tuesday on the sidelines of an energy conference in India.
India, and Bharat Petroleum Corporation Limited BPCL are among the companies involved in such discussions, the official added. The talks are taking place just as President Trump is preparing to host Indian Prime Minister Narendra Modi for a meeting in Washington later this week. India and other buyers in Asia are looking to secure more energy deals with the U.S. to avoid the tariff spree of the new U.S. administration.
India, the biggest natural gas distributor in the country, is reviving plans to procure U.S. LNG supply in the long term by either buying a stake in an American export project or signing a long-term offtake agreement, a top company official told Reuters earlier this week. By Tsvetana Paraskova for Oilprice.com
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