As part of the two million barrels contracted by India, the first shipment of US crude arrived Monday at Paradip Port in Odisha. The shipment follows recent US oil purchase commitments by IndianOil (IOC) and Bharat Petroleum (BPCL), which have ordered orders for more than 2 million barrels from the US. According to a report, US crude is $ 2 per barrel cheaper for India, compared to Dubai’s most imported crude. The shipment to Paradip was hosted by the United States Consul General in Hyderabad, Katherine Hadda, joint secretary for international cooperation in the oil ministry Sunjay Sudhir and Deputy Secretary in the Ministry of Foreign Affairs Munu Mahawar. While shipments of US crude to India have the potential to boost bilateral trade by up to $ 2 billion, this is one of the first shipments to India since the United States stopped oil exports in 1975.
According to a statement from the US embassy, MaryKay Carlson, a Chargé d’affaires at the US Embassy in New Delhi, said: “This event marks a significant milestone in the growing partnership. The US and India are increasing our cooperation in the including plans for cleaner, renewable fossil fuels, nuclear, and state-of-the-art energy storage and energy efficiency technologies. We look forward to working together on new US crude sales and exploring opportunities to expand the role of natural gas in India “.
During their June 26 meeting in Washington, US President Donald Trump and Prime Minister Narendra Modi committed themselves to expanding and enhancing bilateral energy cooperation through a strategic energy partnership. The energy trade between nations will expand as India is taking steps to enhance the use of natural gas in its energy mix. India is also expanding its infrastructure for piped natural gas and liquefied natural gas used in cooking.
In a statement released by the MEA, Sudhir said that the inclusion of the United States as a source for crude oil imports by India’s largest refiner will become a new chapter in the history of Indo-US trade, particularly in the oil and gas sector. a long way to mitigate the risks arising from geopolitical disruptions. He expressed hope that the new agreement would also introduce price stability and energy security for India. MT New Prosperity, a large crude oil company (VLCC), with capacity of 2 million barrels of oil, left the Gulf Coast of the United States on August 19.
IndianOil will process crude at its East Coast refineries, located in Paradip, Haldia, Barauni and Bongaigaon. IndianOil, which became the first Indian public sector refinery to obtain US crude, has placed a cumulative order of 3.9 million barrels in the United States. BPCL and Hindustan Petroleum, the other two public sector refineries in India, have also ordered orders of 2.95 million barrels and 1 million barrels respectively for their Kochi and Vizag refineries in the United States.
The total volume of crude currently contracted by refineries in the Indian public sector is therefore 7.85 million barrels. The three refineries are getting sweet, bitter, and heavy crude for their refineries that are equipped to handle a complex blend of crude oils. Indian companies, both public and private, have made significant investments in Shale assets in the United States with a total investment of approximately $ 5 billion.
Indian firms have also contracted LNG from the United States and the first shipment is expected to be delivered to India in January 2018. Both India and the United States are the world’s largest and third energy consumers, respectively.