7 months ago
BPCL secures global LNG and crude deals
BPCL, a big Indian oil company, is making two important deals to get more energy.
First, they are looking to buy a lot of liquefied natural gas (LNG) over the next 10 years from companies like Adnoc Gas, TotalEnergies, and Gunvor.
This deal is worth ₹35,000 crore and will help India have more energy security.
Second, BPCL has signed an agreement with Trafigura to get Iraqi Basrah and Oman crude oil.
This will start in April 2026 and is important for meeting India's growing energy needs.
These deals show that India is working hard to make sure it has enough energy for the future.
BPCL has secured a ₹35,000 crore, 10-year LNG supply contract with global energy majors, including Adnoc Gas, TotalEnergies, and Gunvor.
The LNG contract involves 68 cargoes totaling 4 million tonnes, with 4 cargoes annually in the first three years and 8 cargoes annually in the remaining seven years.
BPCL has also signed a crude oil supply agreement with Trafigura for Iraqi Basrah and Oman crude, with deliveries starting in April 2026.
India is pushing to secure long-term gas supplies amid geopolitical volatility and to achieve energy security following Gazprom's contract renege with Gail in 2022.
BPCL is investing ₹25,000 crore in the city gas distribution network over the next five years, in addition to signing recent deals with Adnoc Gas and Petrobras.
- Who
- BPCL, Adnoc Gas, TotalEnergies, Gunvor, Trafigura
- What
- A 10-year LNG supply contract worth ₹35,000 crore and a crude oil supply agreement with Trafigura
- Where
- India, with supplies to be sourced globally
- When
- The LNG tender was launched earlier this month, with a 10-year contract period. The crude oil agreement was signed at the India Energy Week 2026 in Goa, with deliveries starting in April 2026.
- Why
- To secure long-term gas supplies amid geopolitical volatility, ensure energy security, and meet growing energy demands
Key facts
- Contract Value (LNG)
- ₹35,000 crore
- Duration (LNG)
- 10 years
- Total Cargoes (LNG)
- 68
- Annual Cargoes (First 3 Years, LNG)
- 4
- Annual Cargoes (Next 7 Years, LNG)
- 8
- Total LNG Volume
- 4 million tonnes
- India's LNG Imports (FY25)
- 35,720 mmscm
- India's LNG Import Value (FY25)
- $14.9 billion
- Crude Oil Suppliers
- Trafigura (Iraqi Basrah and Oman crude)
- Crude Oil Delivery Start Date
- April 2026
Quotes
Arvinder Singh Sahney
Chairman and managing director of Indian Oil Corporation
“We are procuring crude on purely commercial considerations. Whichever crude is commercially beneficial for us, we will go for that. It has been our constant endeavour to expand the crude basket.”
financialexpress.com
“Till about five years back, we were procuring crude from around 27 geographies. Today, we are procuring from 41 geographies. This is a continuous effort and we will continue to expand our crude basket.”
financialexpress.com
Sources
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