In­dia to buy $ 1 bil­lion of US crude oil

Chemical Industry Digest - - News & Views -

In­dian

oil com­pa­nies have started the process of procur­ing crude oil from the United States, fol­low­ing the visit of Prime Min­is­ter Modi, to the US in the June 2017. Six weeks af­ter the visit, the first or­ders for $ 1 bil­lion of crude were placed.

In­dian Oil Cor­po­ra­tion and Bharat Petroleum have al­ready taken delivery of the first 2 MMbbl that have shipped from ports in Texas and Louisiana. The first ship­ments will reach Paradip (Odisha, In­dia) in the last week of Septem­ber.

In­dia is the third largest con­sumer of en­ergy in the world fol­low­ing the US and China, and the third larg- est im­porter of crude and the fourth largest im­porter of LNG. In terms of en­ergy, In­dia to­day con­sumes less than 5% of the world en­ergy. In­dian oil com­pa­nies are in­creas­ing their foot­print in the United States. Four In­dian pub­lic and pri­vate sec­tor com­pa­nies—GAIL, IOCL, Oil In­dia and Re­liance—have in­vested ap­prox­i­mately $ 5 b in shale as­sets. In­dia will also source LNG from the United States. In­dian com­pa­nies have al­ready con­tracted 9 MMtpy of LNG from the US and the first ship­ment is ex­pected in Jan­uary 2018.

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