India seeks to import US oil & gas in a bid to diversify its energy sources, official says

India said that it is looking to ramp up the purchase of crude oil and natural gas from the US, amid Washington’s dismay over New Delhi’s purchase of Russian oil. On Wednesday, US President Donald Trump claimed that Prime Minister Narendra Modi has told him that “India would not buy Russian.”

While New Delhi on Thursday rejected the assertion, it noted that India is looking to diversify its energy sources. It is pertinent to note that India is the second biggest buyer of Russian oil after China. Trump cited its purchases from Moscow when he announced 50 per cent tariffs on imports from India in August.

In the Thursday statement, the Indian Ministry of External Affairs said that New Delhi’s priority is to safeguard the interests of Indian consumers in a volatile energy environment. “Ensuring stable energy prices and secured supplies have been the twin goals of our energy policy. This includes broad basing our energy sourcing and diversifying as appropriate to meet market conditions,” said MEA spokesperson Randhir Jaiswal.

He mentioned that the Trump administration had shown interest in deepening energy cooperation between the two nations, and talks in this regard are currently underway. Meanwhile, India’s Trade Secretary Rajesh Agarwal said Wednesday that India was willing to increase its purchases of American oil and natural gas if prices were competitive.

Price remains a key contention

While speaking to the reporters, Agarwal said that India has been buying around $12-$13 billion worth of crude oil and gas from the US annually and that there was no room to nearly double that without causing disruptions for Indian refiners.

A team of Indian government officials was visiting the US to discuss a bilateral trade agreement that includes energy cooperation, Agarwal averred. “In discussions we are in, we have indicated very positively that India as a country would like to diversify its portfolio as far as energy imports are concerned. That’s the best strategy for a big buyer like India,” he said.

The tension between India and the US is coming at a time when Trump has been frustrated by his inability to force an end to the war in Ukraine, which began with Russia’s invasion almost four years ago. He’s expressed dissatisfaction with Russian President Vladimir Putin, whom he increasingly describes as the primary obstacle to a resolution, and he’s scheduled to meet with Ukrainian President Volodymyr Zelenskyy on Friday.

In recent weeks, PM Modi has engaged positively with Trump’s social media posts. He recently congratulated the American leader after Israel and Hamas agreed to the first part of his ceasefire deal, suggesting New Delhi is keen to expand cooperation with the US. In turn, Trump called Modi his “friend” and wished him well on his birthday last month.

With inputs from the Associated Press.