NEW DELHI: The US is stepping up efforts to deepen its energy ties with India through higher fuel exports, expanded crude oil trade and refinery investments, with Reliance Industries emerging as a key partner. The push gained momentum on Wednesday as US Secretary of State Marco Rubio visited Reliance’s Jamnagar refinery in Gujarat, while US Ambassador Sergio Gor announced that America had become India’s largest LPG supplier.
“Over the past year, India’s imports of US LPG have surged from under 10% to 67%, making the United States India’s largest LPG supplier,” Gor, who accompanied Rubio, said in a post on X. The visit also brought Reliance’s planned investment in a new American refinery into focus. In March, US President Donald Trump announced what he described as a $300-billion energy deal involving Reliance and a proposed oil refinery at the Port of Brownsville in Texas, the first major new US refinery in 50 years. The project, being developed by America First Refining, is designed to process 168,000 barrels per day (bpd) of American shale crude. The $300-billion figure represents the projected long-term value of crude purchases and refined products, rather than the refinery’s construction cost.
“Reliance’s planned investment in the first new US oil refinery in 50 years is another major opportunity to expand American energy production and create jobs,” Gor said.
Rubio and Gor were welcomed at Jamnagar by the Mukesh Ambani family. The ambassador also shared a photograph of Rubio with Reliance Executive Director Anant Ambani. Rubio arrived in Jamnagar from Mumbai a day after describing India as a crude oil refining “superpower” and advocating greater processing of Venezuelan crude in the country. Washington is also looking to expand American crude exports to India, while exploring the possibility of Indian participation in Venezuelan oil production.
Reliance said Rubio and Gor were given a tour of the refinery complex and briefed on its New Energy giga-factories, currently being commissioned in phases, and data centres under construction. “The visit included wide-ranging discussions on the global energy landscape and opportunities for commercial partnerships across conventional and new energy,” the company said in a statement.
The discussions covered reliable and affordable energy supplies, technological advances, resilient supply chains and investments required to meet growing demand. “Discussions also explored the increasing intersection of energy and digital infrastructure, including the role of dependable power in supporting data centres and the expansion of the digital economy,” the company added. Mukesh Ambani and Anant Ambani also outlined opportunities for collaboration with US companies in technology, engineering and advanced manufacturing.
Sumit Ritolia, lead analyst, modelling and refining at Kpler, said Jamnagar’s flexibility to process American, Russian and Venezuelan crude makes it strategically important to global energy markets.
“Jamnagar could certainly become an additional channel through which Washington seeks to influence India’s Russian crude purchases, but the outcome will depend on economics as much as geopolitics,” Ritolia said. He said additional Venezuelan supplies could complement rather than necessarily replace Russian crude, while higher freight costs could make American oil less competitive.
The engagement comes as Indian refiners benefit from tight global diesel supplies. Kpler data showed India’s combined diesel, gasoil and cycle oil exports rising nearly 19% to around 707,000 bpd in October so far, from 596,000 bpd in September and 537,000 bpd in August.
“India is well positioned to benefit from the ongoing global diesel supply crunch, given its large, complex refining capacity, diversified crude sourcing and strong export infrastructure,” Ritolia said.
Source: The Financial Express
