India plans to continue buying oil from Russian companies that are permitted to sell, as long as prices remain low, according to Indian Oil Minister Hardeep Singh Puri. Speaking at the GasTech conference in Houston, Puri highlighted that Western sanctions on Russia, linked to its conflict with Ukraine, have imposed price caps on Russian crude. India, he said, is committed to securing oil and gas at the most affordable rates, regardless of the supplier.
“If a company isn’t under sanctions, I’ll buy from the cheapest source,” Puri stated. He also noted that European nations and Japanese companies are purchasing from Russia, so India isn’t alone in this approach.
As one of the world’s largest energy consumers, importing 88% of its oil, India’s energy demand is set to rise, with a focus on increasing natural gas and renewable energy usage. The country, the third-largest oil importer globally, has a refining capacity of about 252 million metric tons (5.04 million barrels per day) and is considering expanding to 400 or 450 million metric tons annually.
While global gas prices surged after Russia’s invasion of Ukraine, slowing India’s gas adoption, the country aims to increase natural gas to 15% of its energy mix by 2030, up from the current 6%. Puri emphasized that the pace of this shift depends on stable and lower gas prices.
Additionally, Indian companies are investing in liquefied natural gas (LNG) projects and exploring opportunities for further investments globally. Puri also mentioned ongoing talks with Guyana, which has substantial oil reserves, and discussions with the world’s top oil and gas companies regarding hydrocarbon exploration in India.
