India to Continue Purchasing Low-Cost Russian Oil, Says Oil Minister
OIL & GAS

India to Continue Purchasing Low-Cost Russian Oil, Says Oil Minister

India is ready to continue purchasing oil from Russian companies permitted to make such sales, as the prices are low, according to Oil Minister Hardeep Singh Puri.

Due to Western sanctions on Russia related to its conflict with Ukraine, there is a cap on the price Russia can charge for its crude oil. Puri mentioned in an interview with Reuters at the GasTech conference in Houston that India is willing to buy oil and gas at the most affordable prices available. He stated that if an entity is not under sanctions, India will consider buying from the cheapest supplier.

He also noted that European countries and Japanese businesses are purchasing from Russia, indicating that India is not acting alone in this regard.

India is among the world's largest energy consumers, importing 88% of its oil needs. Puri anticipates an increase in energy consumption, particularly in natural gas and renewable energy usage. The country, being the third-largest oil consumer and importer globally, has an annual refining capacity of around 252 million metric tons, or 5.04 million barrels per day (bpd), and plans to expand this capacity. Currently, projects are underway to increase capacity to 300 million metric tons per annum (600,000 bpd), and discussions are ongoing about whether to further increase it to 400 or 450 million metric tons.

The surge in global prices for super-chilled gas following Russia's invasion of Ukraine has slowed India's adoption of natural gas. Although India aims to increase the share of gas in its energy mix to 15% by 2030 from the current 6%, the pace of this transition depends on price stabilization. Puri suggested that if gas prices stabilize and decrease, its proportion in India's energy mix will rise.

Additionally, Indian state and private companies have made investments in liquefied natural gas (LNG) projects and will continue exploring opportunities for global investment.

India is ready to continue purchasing oil from Russian companies permitted to make such sales, as the prices are low, according to Oil Minister Hardeep Singh Puri. Due to Western sanctions on Russia related to its conflict with Ukraine, there is a cap on the price Russia can charge for its crude oil. Puri mentioned in an interview with Reuters at the GasTech conference in Houston that India is willing to buy oil and gas at the most affordable prices available. He stated that if an entity is not under sanctions, India will consider buying from the cheapest supplier. He also noted that European countries and Japanese businesses are purchasing from Russia, indicating that India is not acting alone in this regard. India is among the world's largest energy consumers, importing 88% of its oil needs. Puri anticipates an increase in energy consumption, particularly in natural gas and renewable energy usage. The country, being the third-largest oil consumer and importer globally, has an annual refining capacity of around 252 million metric tons, or 5.04 million barrels per day (bpd), and plans to expand this capacity. Currently, projects are underway to increase capacity to 300 million metric tons per annum (600,000 bpd), and discussions are ongoing about whether to further increase it to 400 or 450 million metric tons. The surge in global prices for super-chilled gas following Russia's invasion of Ukraine has slowed India's adoption of natural gas. Although India aims to increase the share of gas in its energy mix to 15% by 2030 from the current 6%, the pace of this transition depends on price stabilization. Puri suggested that if gas prices stabilize and decrease, its proportion in India's energy mix will rise. Additionally, Indian state and private companies have made investments in liquefied natural gas (LNG) projects and will continue exploring opportunities for global investment.

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