India is actively seeking to increase its imports of U.S. liquefied natural gas (LNG) following the recent lifting of export restrictions by the U.S. government.
As one of the largest LNG importers in the world, India aims to expand its natural gas share in its energy mix from 6.2% to 15% by 2030, making new LNG deals a priority for its oil companies, according to Reuters.
Why India wants more U.S. LNG
Diversifying Energy Sources – India currently relies on long-term contracts with Qatar, where LNG prices are linked to crude oil prices. U.S. LNG, which follows Henry Hub pricing, offers a different pricing model, giving Indian buyers more flexibility.
Growing Demand for Gas – As India moves toward a cleaner energy future, natural gas is seen as a transition fuel to reduce reliance on coal and oil.
Stronger U.S.-India Trade Ties – With discussions set to take place between Indian and U.S. officials, energy cooperation is expected to grow, strengthening trade relations.
Key players in the negotiations
India’s major oil companies—including GAIL (India) Ltd, Indian Oil Corp, and Bharat Petroleum Corp—are already in talks with U.S. suppliers to secure new long-term LNG deals.
Some companies, like GAIL, are even considering investing in U.S. LNG projects to secure a more stable supply.
Currently, GAIL imports 5.8 million tons of LNG per year from the U.S., sourced from:Cove Point LNG terminal (operated by Berkshire Hathaway Energy)Sabine Pass LNG terminal (operated by Cheniere Energy)
With India’s increasing energy needs, expanding its LNG sourcing portfolio with U.S. gas could provide greater stability and cost management.
U.S. LNG gains interest across Asia
India is not alone in its pursuit of U.S. LNG. At least six other Asian countries, including Japan and Taiwan, have expressed interest in securing new LNG deals.
Some see this as a way to balance trade with the U.S., while others view it as an opportunity to reduce dependence on a single supplier and enhance energy security.
Looking ahead: what this means for the market
With Indian Prime Minister Narendra Modi set to discuss energy imports with U.S. President Donald Trump, the outcome of these talks could reshape India’s energy strategy.
More U.S. LNG in India’s supply mix would:
Enhance price flexibility by balancing Qatar’s oil-linked LNG with Henry Hub pricing.
Strengthen India’s energy independence by reducing reliance on specific suppliers.Boost U.S. LNG exports, solidifying America’s position as a top LNG provider in Asia.
As energy demands rise, these negotiations could lead to a major shift in global LNG trade, benefiting both Indian energy security and U.S. LNG producers.
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