New Delhi: State-owned Petroleum Corporation Limited (IOCL) has signed a fixed-term contract with commodity-traded Trafigura to supply liquefied natural gas (LNG) for five years and said, said Arvinder Singh Sahney, chairman and managing director of Petroleum.
Speaking to the media on Wednesday, CMD said the deal was worth about $130-14 million, and the price of liquefied natural gas would be based on the benchmark price of the U.S. Henry Hub. Supply may begin in the second half of this year.
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“We are studying about 2.5 million tons (MT) of (MT), starting this year’s H2, accounting for 27 cargoes in five years, about $130-14 million,” he said.
The deal was reached when India intends to secure long-term contracts to ensure energy security. Among other sources in its portfolio, Trafigura is sourced through a long-term agreement with Cheniere Energy in the United States. India is already considering strengthening U.S. energy supply, and negotiations on bilateral trade agreements are already underway. India currently imports 45% of its annual LNG demand.
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In the last fiscal year, Russian crude oil accounted for 22% of crude oil purchased by the company, down from 30% of fiscal year 24.
“This is not due to sanctions, because sanctions were only made in January 2025. The crude oil we buy is completely commercially based. It is a purely commercial decision,” CMD said.
Russia has become the top supplier of Indian oil since fiscal 22. However, the supplies have been affected in recent sanctions on ships carrying Russian oil and some producers.
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State-owned oil marketing and refining major reported consolidated net profit in March at the end of the quarter rose 52.47% year-on-year ₹83,6763 million.
However, its consolidated net profit fell 68% for fiscal 25 years ₹13,788.83 million, from ₹The previous fiscal year was 43,161.15 million. Its annual revenue fell by 2.5% in the previous fiscal year to ₹8.62 trillion.
The profit decline can be attributed to lower optimization margins and higher expenses. Total refining margin for FY25 was $4.80 per barrel (bbl), below $12.05/bbl for FY24
Sani said the company’s domestic sales in fiscal 25 were 95.375 tons, compared with 92.311 tons in the previous fiscal year. Total sales, including exports, were 100.292 tons, while 97.551 tons increased by 3%.
In addition, the financial cost for fiscal year 25 is ₹87.32 million ₹The last fiscal year was 73.28 million.
