Skip to main content

More oil from the US? India’s energy security to be top priority when Trump-Modi meet


Discussions around India's energy security will top the agenda during US President Donald Trump’s proposed visit to India this year. Though no specific dates have been announced for Trump’s visit, officials from various sectors of both countries have met frequently in recent months.

Energy is an important component in the Indo-US trade mix, and currently, India imports around $4 billion worth of oil and gas from the United States of America. The ongoing US-Iran imbroglio has affected India’s energy supplies. This will have a cascading effect on India's strategic oil reserves and is expected to affect the country's refining capacity as it is a critical source of export earnings and has strategic implications.

The crude imports from the US are expected to go up to around 10 million tonnes (MT) in the current fiscal year, which is likely to double after Trump's visit. India had to stop the import of crude oil from Iran last year after the Trump administration refused to give further waivers.

According to a senior official who wished to remain anonymous, India's energy security is expected to be on top of the agenda when the two sides meet. "This is expected to include discussions related to the increase in imports from the US, as well as the technologies that the top companies could offer to India," the official said.

Trump is expected to be accompanied by high-level officials and a business delegation which would have representatives of the oil companies, as well as defence and aerospace sectors.

Discussions are likely to focus on concessional freight rates for Indian oil imports as well as higher credit period of 60-90 days which could be at par with what India received from Iran. As reported by Financial Express Online, these issues were also discussed at the CEO-level meet in Texas on the sidelines of the "Howdy Modi" event last year when Prime Minister Narendra Modi toured the US.

Reportedly, the US is the world's top oil producer, with Texas producing more than Iran and Iraq combined. 

Source : Defence News

Comments

Post a Comment

Popular posts from this blog

Explained: What is Army Aviation Corps, the youngest Corps of the Indian Army

A look at the Army Aviation Corps’ history and its relevance in modern day battlefields, including in Counter Insurgency and Counter Terrorism (CI-CT) operations. Representative Image The Army Aviation Corps (AAC), the youngest Corps of the Indian Army, celebrated its 35th Corps Day on November 1. We take a look at the arm that adds an air dimension to the Army’s capabilities, its history, and its relevance in modern day battlefields, including Counter Insurgency and Counter Terrorism (CI-CT) operations. The roots of Army Aviation Corps The origin of the AAC can be traced back to the raising of the Army Aviation wing of the Royal Air Force in India in 1942, and the subsequent formation of the first Indian Air Observation Post in August 1947. The Air Observation Post units primarily acted as artillery spotters – which are the elements that help the artillery in directing the fire and also giving air support to ground forces. In the wars of 1965 and 1971, the Air Observation Post helicop...
Post a Comment
Read more

India's S-400, Nuke Subs, Rafales pose a serious threat to Pak - FM Qureshi

India’s purchase of Russian S-400 air defence systems, via a deal signed last year and worth $5.43 billion, has unnerved Pakistan, with Foreign Minister Shah Mohammed Qureshi describing the S-400s as destabilising weapon systems which could affect the region's strategic stability. Delivery of the first S-400 system is likely to take place in 2020. Expressing his apprehension about the arms purchase by India, Pakistani Foreign Minister Shah Mohammed Qureshi has called on global powers to be "mindful" of their responsibility in terms of arms supplies to the region. "The introduction of new destabilising weapon systems, such as the S-400 anti-ballistic missile system, could further accentuate challenges to strategic stability. They can encourage a misadventure by an adversary, under a false sense of security," FM Shah Mohammed Qureshi said on Wednesday in Islamabad. Last October, India inked a $5.43 billion defence contract with Russia to purchase of five S-400 air...
Post a Comment
Read more

Explained: India-US defence deals - BECA, LEMOA & COMCASA

At 2+2 meeting next week, the two countries will look to push intelligence sharing pact BECA . With key deals LEMOA and COMCASA already signed, what does it mean for defence, particularly in light of LAC standoff? India and US have signed the LEMOA in 2016, COMCASA in 2018 and BECA is scheduled for the third 2+2 ministerial meeting (on November 3rd) India and the US are preparing for the third 2+2 ministerial meeting between External Affairs Minister S Jaishankar and Defence Minister Rajnath Singh , and US Secretary of State Michael Pompeo and Defense Secretary Mark T Esper in New Delhi on October 26-27. Deputy Secretary of State Stephen E Biegun visited India last week to lay the groundwork for the high-level visits 2+2 in 2018. One of the items on the agenda will be the Basic Exchange and Cooperation Agreement (BECA) — a pact with deep military implications. In the last two meetings, agreements known as LEMOA and COMCASA were signed; now, with BECA, these have been dubbed the ...
Post a Comment
Read more