India signs its first long-term gas import contract with US
Illustrative photo: India imports over 2 million tons of liquefied natural gas from the US (Getty Images)
Indian oil refining companies have signed their first long-term deal with the United States to import 2.2 million tons of liquefied natural gas (LNG) in 2026, Bloomberg informs.
Indian Oil, Bharat Petroleum, and Hindustan Petroleum, the largest state-owned oil refining companies in India, will collectively purchase 2.2 million tons of LNG from the US.
According to India’s Oil Minister Hardeep Puri, this contract will allow the country to source nearly 10% of its imported gas from the US Gulf Coast, compared with just over 0.6% from US gas last year.
Anonymous traders reported that India will receive two shipments of gas each month from Phillips 66, and one shipment each from Chevron and TotalEnergies.
In addition, India is negotiating with the US to reduce tariffs imposed by Washington in response to India’s purchases of Russian oil. These sanctions have affected more than half of India’s exports to the US.
Bloomberg reports that over the past 10 years, LNG consumption in India has increased by 74%, driven by a government program encouraging low-income households to switch to cleaner cooking fuels.
EU abandonment of Russian gas
US President Donald Trump has long urged European countries to completely stop purchasing Russian energy resources, which Russia uses to finance its war against Ukraine.
Recently, the EU Council adopted a common position on the gradual cessation of Russian gas imports under the REPowerEU plan, which envisions a full phase-out of Russian energy by January 1, 2028.
At the same time, Hungarian Prime Minister Viktor Orbán stated that Budapest does not intend to stop importing Russian gas and oil.
In addition to Hungary, Slovakia continues to purchase Russian gas and oil, while other EU countries ceased cooperation with Russia back in 2022.
Ukraine, for its part, is helping Slovakia seek alternatives. President Volodymyr Zelenskyy recently assured that Kyiv is ready to provide Bratislava access to other energy markets to reduce dependence on Russia.
