New Delhi: Union petroleum and natural gas minister Hardeep Singh Puri will visit the US and the UAE in the coming months to attend key energy events in a bid to boost India’s energy diplomacy, diversify energy sources and secure long-term oil and gas contracts.
Two people familiar with the developments said Puri will first attend Gastech 2024 in Houston, where he will hold talks with U.S. energy giants.
Ready to gain momentum
“Energy diplomacy efforts will gain momentum now that the minister will visit New York and Houston next month. In Houston, he will attend Gastech. He will also visit the UAE for the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) in November,” said one of the two people mentioned above.
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India is making efforts to expand domestic oil and gas production areas and boost output in a bid to reduce imports. India has invited major global exploration and production companies to participate in its efforts to increase energy production.
Investment opportunities
At an event here in June, the minister said, “The exploration and production (E&P) sector offers investment opportunities worth $100 billion by 2030.” He highlighted the potential of India’s 26 sedimentary basins, which contain significant reserves of crude oil and natural gas that are yet to be fully exploited.
US companies ExxonMobil and Chevron already have partnerships with Indian state-owned ONGC to explore exploration and production opportunities. In 2022, ONGC signed an agreement with ExxonMobil for deepwater exploration in India. That same year, the Maharatna company also partnered with Chevron New Ventures PTE Ltd, a subsidiary of California-based Chevron Corp., to assess exploration potential in India.
The Minister is also likely to attend ADIPEC 2024, which is scheduled for 4-7 November.
“The minister has been a regular at events such as Gastech and ADIPEC. This year he is also expected to attend ADIPEC. However, the visit has not yet been finalised,” said another person.
For long-term contracts
India has been considering establishing ties with global oil and gas suppliers for long-term contracts for both oil and gas to ensure energy security.
Energy prices have surged to record highs in 2022 amid the height of the Russia-Ukraine war, and Russia’s Gazprom has defaulted on its gas supply contract to GAIL, prompting India to make efforts to diversify its import sources, sign long-term contracts and seek more attractive deals.
In July, Mint reported that state-owned Indian Oil Corp. Ltd (IOCL), Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL) are in talks with Brazilian energy major Petroleo Brasileiro SA (Petrobras) to secure long-term guaranteed supplies of crude oil.
India is the third-largest importer of oil and gas, accounting for nearly 85% of its energy needs. In fiscal year 2024, it imported 233.1 million metric tonnes (mmt) of crude oil, up from 232.7 million metric tonnes in the previous fiscal year (2023). India’s LNG imports in fiscal year 2024 were 31,795 million metric standard cubic metres (mmscm), up 17.5% from 26,304 mmscm in the previous fiscal year.
Questions sent to the Ministry of Petroleum remained unanswered by the time this edition went to press.
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