U.S. energy giants are increasingly interested in entering India's gas infrastructure sector, a development linked closely to ongoing trade talks between the two countries amid complex geopolitical issues including Trump's tariffs on Indian imports due to its Russian oil purchases.

This interest forms part of a broader strategy to leverage India's growing energy market and expanding gas infrastructure.

India is actively expanding its natural gas infrastructure, including LNG terminals, pipelines, and city gas distribution networks, aiming to increase the share of natural gas in its energy mix from the current 6% to 15% by 2030.

The country's LNG re-gasification capacity is projected to nearly double by 2025, supported by several new floating and ground-based terminals along its coasts. The national gas pipeline network is also rapidly growing, with plans to complete a gas grid of over 35,000 km to enable wider and more affordable gas distribution across India. This expansion is complemented by regulatory reforms aimed at increasing transparency and efficiency of LNG terminal operations.

The U.S. companies see opportunity in these developments as India represents a vast and growing market for cleaner energy transition including natural gas, LNG, compressed natural gas (CNG), and gas for industrial and transport sectors.

With India's large projected demand in sectors such as fertilisers, industrial manufacturing, and road transport (including a switch from diesel to LNG for heavy trucks), U.S. energy firms are keen on investing early to gain footholds in infrastructure and supply chain operations.

The U.S. government's push for a trade deal with India reflects this energy dimension, where easing of trade tensions and tariff reductions could facilitate more robust energy trade and investment cooperation.

Trump's administration has been pressing India to limit its imports of discounted Russian crude oil by imposing tariffs, a sticking point in negotiations, but U.S. energy leaders view expanding infrastructure ties in India as a way to strengthen bilateral relations and support India's energy security goals.

U.S. energy giants' interest is driven by India's ambitious gas infrastructure expansion, its rising natural gas consumption projected to grow significantly in the coming decade, and policy reforms making the market more accessible.

These efforts align with the U.S. desire to counterbalance Russian oil influence and deepen strategic ties with India through energy cooperation, despite the complexities of current geopolitical and trade disputes.

Based On Mint Report