India, one of the fastest growing countries in Asia, is actively working to revise its energy policy. At the moment, the country's economy is largely dependent on coal, which makes up about 30% of the energy balance, and on oil supplies from Russia. However, as Bloomberg columnist Stephen Staprzynski reports, New Delhi is seeking to actively integrate into the liquefied natural gas (LNG) market.

According to the publication, India faces serious challenges on this path, since most of the LNG capacity and cargoes have already been reserved by European countries and China. However, the Indian government does not back down in the face of difficulties, even despite the negative experience of neighboring Pakistan in this area.

India, acting as a guarantor of transactions carried out by private companies and enterprises, is actively seeking to enter into LNG futures contracts, limiting the supply options for other countries in the region. The goal of such actions is to “ensure energy security” in the long term.

Indian authorities have stressed the importance of avoiding supply shortages by the end of the current decade. Gail has already signed an agreement to purchase 1 million tonnes of LNG per year from supplier Vitol for the next 10 years, starting in 2026. The country's plans are aimed at increasing the share of gas in the energy balance to 15% by 2030, compared to the current 6%.

Gail representatives told Bloomberg that the deal had been concluded with Vitol. The long-term contract was signed against the backdrop of US sanctions against Russian LNG projects, in particular the Arctic LNG project, which seriously changed the prospects for Asian clients. Indian companies planned to purchase raw materials from Russian suppliers, but as a result they had to negotiate with a Western importer.