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Indian oil firms are exploring stakes in US LNG projects and upstream tie-ups with Japanese companies, as New Delhi pushes energy diversification, technology partnerships and long-term supply security amid geopolitical volatility.
In a bid to deepen energy partnership with the US amid a volatile geopolitical backdrop, Indian oil and gas companies are exploring investments in natural gas liquefaction facilities in the US, said Hardeep Singh Puri, union minister for petroleum and natural gas.
On the participation of Indian companies in American gas liquefaction projects, he said firms are evaluating equity infusion in projects that are under construction or nearing final investment decision. He also highlighted the growing interest of American companies in India’s energy sector.
"US companies are partnering actively in India’s energy sector, across the exploration and production value chain,” Puri told reporters during the ongoing India Energy Week 2026 on Thursday. US firms are looking to invest in India’s exploration and production (E&P) segment and see India as a strong trading partner for gas, he added.
The statement gains significance as India is looking at diversifying its energy sources and enhancing energy collaboration with the US. The US has already imposed a steep 50% tariff on Indian exports over India's imports of Russian oil.
Separately, Puri said Indian oil and gas producers are also exploring collaborations with Japanese E&P companies for joint bidding of blocks under the Open Acreage Licensing Policy (OALP).
The US is already the country’s sixth largest energy trade partner, with hydrocarbon trade reaching over $13.7 billion in the fiscal year 2024-25. Last year, both the countries committed to increase bilateral energy trade to $20 billion.
Both the countries are also looking at potential collaboration in carbon capture, utilization and storage (CCUS) and hydrogen, along with critical minerals, he said.
Japan upstream ties
Regarding bilateral engagement with Japan, he said India invited Japanese oil companies to participate in the ongoing tenth round of auctions under the OALP.
“We had an India-Japan roundtable on opportunities for collaboration across the energy value chain,” Puri said, adding that ethanol and biofuels emerged as other key areas for partnership, with India offering surplus ethanol capacity and diversified feedstocks.
Some of the major Japanese E&P companies are INPEX Corporation, JAPEX, and JX Nippon Oil & Gas Corp. The plan to invest in liquefaction projects in the US comes at a time when the US is expanding its facilities and India is looking at diversifying its import sources for energy.
In addition, during the ongoing India Energy Week, India and Japan also discussed collaboration opportunities across automation, digitalization, AI-enabled predictive analytics, SCADA systems, and advanced instrumentation to enhance efficiency across oil and gas and new energy segments.
Puri said that Yokogawa Electric Corporation, a Japanese multinational electrical engineering and software company, has already shown strong interest in enhancing investment in India.
Investor confidence
He also noted that global and domestic companies have expressed strong confidence in India’s growth trajectory and conveyed their keen interest in expanding and deepening their business presence in India.
The engagements come at a time when India is looking to diversify its energy sourcing and ensure energy security.
Prime minister Narendra Modi on Wednesday interacted with chief executive officers of about 27 global and domestic energy giants.
Rituraj Baruah is in Panaji on the invitation of the union ministry of petroleum and natural gas.
English (US) ·