KEY POINTS
- Trafigura will supply 2.5 million tonnes of LNG to Indian Oil Corp. over five years for terminals nationwide.
- The deal expands Trafigura’s Asian footprint while supporting India’s push to increase gas in its energy mix.
- It follows Trafigura’s recent oil supply deal in Brazil, highlighting its multi-fuel growth strategy.
With the signing of a significant LNG contract with Indian Oil Corp., Trafigura has made a new move into one of Asia’s fastest-growing gas markets.
The Singapore-based company will supply the state-owned refiner with 2.5 million tonnes of LNG for regasification at terminals throughout India as part of the five-year agreement. The shipments will be utilized to help meet the country’s rapidly increasing energy needs, which are being fueled by an aggressive move away from more polluting fuels as well as industrial growth.
Trafigura India CEO Sachin Gupta referred to the deal as “a milestone” in the company’s regional goals. “We are thrilled to collaborate with Indian Oil on this important LNG supply agreement,” he stated, adding that the company’s global presence and supply chain know-how position
Part of a Broader Energy Portfolio Shift
The agreement diversifies Trafigura’s global LNG book while solidifying its position in South Asia. Only a few months have passed since the trader locked in 6 million barrels of oil from the offshore Atlanta field in the Santos Basin by obtaining oil supply rights from Brazil’s Brava Energia. The most recent deal demonstrates the company’s two-pronged approach, which involves continuing to secure crude volumes in the Americas while strengthening ties with LNG in emerging markets.
Due to the inability of domestic gas production to meet the demands of power plants, petrochemical facilities, and city gas distributors, LNG imports continue to be crucial for India. The IOC agreement supports the government’s overarching objective of increasing the proportion of natural gas in its energy mix from the current 6–7% to 15% by 2030.
The agreement also reflects a broader global reshaping of gas flows, where traders such as Trafigura are increasingly acting as middlemen between Asian buyers seeking long-term supply security and producers in the US, Qatar, and Africa. Locking in multi-year contracts can protect big importers like India from spot market squeezes and price volatility in a tightening market.
