India eyes Angola gas

Four state-owned firms in talks with Sonangol as Iran war continues to squeeze supply

- Rituraj Baruah

Four Indian state-run oil and gas companies are in talks to source cooking and natural gas from Angola’s public-sector energy major Sonangol as the country faces a supply shortage following the closure of the Strait of Hormuz during the Iran war, said two people aware of the developments.

Indian Oil Corp, Bharat Petroleum Corp. (BPCL), Hindustan Petroleum Corp. (HPCL), and GAIL (India) Ltd are in talks with Sociedade Nacional de Combustíveis de Angola, E.P. to ink term contracts for sourcing liquefied petroleum gas (LPG) and liquefied natural gas (LNG), said the people, who didn’t want to be identified as the information is not public.

The talks are currently at the government-to-government level and among companies, they said, adding that the discussions are preliminary.

The West Asia war has led to a global scramble to secure supplies. India is the world's second-largest LPG consumer, with nearly 60% of its requirement met through imports. The country is the world’s fourth-largest LNG importer, with inbound shipments accounting for half of its natural gas demand. Most of India’s gas supplies come from West Asia, led by Qatar and the UAE.