India is currently the world’s fourth-largest LNG importer. Annual LNG imports are estimated at around 25 million tonnes, accounting for roughly 45 percent of the country’s total natural gas consumption. Natural gas itself represents about 6 percent of India’s overall energy mix, but the government has set a target to increase this share to 15 percent by 2030 as part of its decarbonization and energy transition strategy. This makes long-term LNG supply security a key priority for Indian energy companies.
Bharat Petroleum operates four refineries with a combined refining capacity of more than 35 million tonnes per year and plays a central role in supplying fuels to India’s domestic market. Any LNG deal with SOCAR would support not only industrial and power sector demand but also city gas distribution networks, which are expanding rapidly across urban centers. India plans to increase the number of households connected to gas networks from around 12 million today to more than 100 million over the next decade.
At the same time, Bharat Petroleum is moving to strengthen its liquefied petroleum gas (LPG) procurement. Goa said the company plans to buy LPG from the United States at lower prices as part of its supply diversification strategy and has already announced a tender for this purpose. India is the second largest consumer of LPG globally, with annual consumption exceeding 30 million tonnes. Imports cover more than half of this demand, making pricing and supply stability critically important.
LPG imports from the United States have become increasingly attractive due to competitive pricing and ample supply, allowing Indian buyers to reduce dependence on traditional Middle Eastern suppliers. For Bharat Petroleum, securing lower-cost LPG cargoes could help contain subsidy costs and stabilize the domestic cooking gas market, which serves hundreds of millions of households.
For Azerbaijan, potential LNG sales to India would mark an expansion beyond its traditional export markets. While SOCAR is best known for crude oil and pipeline gas exports, engagement with a fast-growing Asian economy like India would strengthen its global energy footprint.
Although discussions remain at an early stage, the parallel pursuit of LPG talks with Azerbaijan and LPG tenders targeting the United States highlights India’s broader strategy of balancing cost efficiency, supply security, and long-term energy transition goals.
Zafar Valiyev, an Azerbaijani energy expert, told News.Az that negotiations between Bharat Petroleum and SOCAR on the purchase of LPG are aimed at strengthening India’s energy security and diversifying its supply sources amid the current geopolitical and economic environment.
Photo: Zafar Valiyev, an Azerbaijani energy expert
“In recent months, the tightening of sanctions against Russia, alongside rising tensions in the Middle East, particularly developments surrounding Iran, has increased risks in global energy markets,” Valiyev said. “One of the key risk factors is the potential threat to the safe transportation of liquid hydrocarbons through the Strait of Hormuz, which directly affects energy supplies to Asian countries.”
Under these circumstances, he added, Indian energy companies are compelled to seek alternative supply channels to reduce dependence on traditional and high-risk routes. “In this context, SOCAR and its trading structures stand out as reliable partners with well-established experience in LPG supplies across the region,” he noted.
Valiyev recalled that for many years SOCAR has exported LPG to Pakistan via the Taftan border crossing point and has also been involved in supplying LNG to Pakistan. “This experience has given SOCAR a strong understanding of the logistical and commercial specifics of South Asian energy markets,” he added.
At the same time, Valiyev stressed that Indian companies do not intend to rely on a single source for LPG supplies and therefore also prioritize parallel cooperation with US producers. “Against the backdrop of the US–China trade war, access to US-produced LPG under more flexible pricing and sales conditions could provide India with additional economic advantages,” he said.
However, he emphasized that talks with SOCAR should not be viewed as strategic in nature. “These negotiations focus specifically on the purchase of the petroleum product LPG, with the primary objective of ensuring supply reliability in the short and medium term,” Valiyev concluded.
