In a strategic move to strengthen energy ties with the United States against a backdrop of geopolitical volatility, Indian oil and gas corporations are actively considering investments in natural gas liquefaction facilities located in the US. This significant development was announced by Hardeep Singh Puri, the Union Minister for Petroleum and Natural Gas, during the ongoing India Energy Week 2026 event held on Thursday.
Deepening US-India Energy Collaboration
Minister Puri elaborated that Indian companies are currently evaluating opportunities for equity infusion in American liquefaction projects that are either under construction or approaching their final investment decision phase. This initiative marks a pivotal step in enhancing bilateral energy cooperation between the two nations.
Simultaneously, Puri highlighted the reciprocal interest from American firms in India's burgeoning energy sector. "US companies are partnering actively in India's energy sector, across the exploration and production value chain," he stated during his interaction with reporters. He further noted that these companies view India as a robust trading partner for natural gas and are keen to invest in the country's exploration and production (E&P) segment.
Strategic Importance and Trade Context
This announcement carries substantial weight as India actively pursues diversification of its energy sources and seeks to fortify its energy collaboration with the US. The context is particularly relevant given the US imposition of a steep 50% tariff on Indian exports, a measure linked to India's imports of Russian oil, underscoring the complex dynamics in global energy trade.
The United States currently stands as India's sixth-largest energy trade partner, with hydrocarbon trade volumes surpassing $13.7 billion during the fiscal year 2024-25. Both countries have previously committed to elevating their bilateral energy trade to an ambitious target of $20 billion, reflecting a shared vision for enhanced economic engagement.
Expanding Partnership Horizons
Beyond liquefied natural gas (LNG), the two nations are exploring potential collaborations in several cutting-edge areas. These include carbon capture, utilization and storage (CCUS) technologies, hydrogen energy development, and critical minerals. Such multifaceted cooperation aims to address both immediate energy needs and long-term sustainability goals.
Forging Ties with Japan in Energy Sector
In a parallel development, Minister Puri revealed that Indian oil and gas producers are also seeking collaborations with Japanese E&P companies for joint bidding of blocks under India's Open Acreage Licensing Policy (OALP). This initiative was discussed during an India-Japan roundtable focused on collaboration opportunities across the entire energy value chain.
"We had an India-Japan roundtable on opportunities for collaboration across the energy value chain," Puri mentioned, adding that ethanol and biofuels emerged as other key areas for partnership. India is positioned to offer its surplus ethanol capacity and diversified feedstocks to bolster this cooperation.
Prominent Japanese E&P firms such as INPEX Corporation, JAPEX, and JX Nippon Oil & Gas Corporation are among the potential partners in these ventures. The discussions also encompassed technological collaborations in automation, digitalization, AI-enabled predictive analytics, SCADA systems, and advanced instrumentation to enhance efficiency across both traditional oil and gas sectors and new energy segments.
Technological Investments and Investor Confidence
Puri specifically pointed out that Yokogawa Electric Corporation, a renowned Japanese multinational specializing in electrical engineering and software, has already demonstrated strong interest in increasing its investment footprint in India. This reflects a broader trend of growing investor confidence in the country's energy landscape.
The minister emphasized that both global and domestic companies have expressed substantial confidence in India's growth trajectory and have conveyed their keen interest in expanding and deepening their business presence within the country. This sentiment was further reinforced by Prime Minister Narendra Modi's recent interaction with chief executive officers of approximately 27 global and domestic energy giants, signaling high-level governmental support for energy sector development.
Driving Energy Security Through Diversification
These comprehensive engagements occur at a crucial juncture as India strategically works to diversify its energy sourcing and bolster its energy security. The exploration of US liquefaction investments, coupled with Japanese partnerships in OALP bidding and technological domains, represents a multi-pronged approach to achieving these objectives.
The plan to invest in US liquefaction projects aligns with the concurrent expansion of American facilities and India's imperative to diversify its energy import sources. This dual-focused strategy not only aims to secure reliable energy supplies but also positions India as an active participant in the global energy transition, leveraging partnerships with key allies like the US and Japan to build a more resilient and sustainable energy future.
