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India in talks to buy LNG from Azerbaijan as energy demand rises

India is seeking to purchase liquefied natural gas (LNG) from Azerbaijan as part of efforts to diversify its energy supply sources and meet growing domestic demand, industry officials have said, Azernews reports.

Pandiyan T.V., head of the LNG division of India’s state-owned Bharat Petroleum, told The Hindu newspaper on the sidelines of India Energy Week in Goa that the company is in negotiations with the State Oil Company of the Republic of Azerbaijan (SOCAR) on potential LNG purchases. The initiative reflects India’s broader push to secure a variety of long-term energy suppliers amid global market volatility and rising demand for cleaner fuels.

India’s energy strategy calls for a significant increase in natural gas use as part of its transition to a lower-carbon fuel mix. Imports of LNG are expected to play a central role, especially as India looks to expand energy access, support power generation and industrial activity, and reduce dependence on pipeline gas and more carbon-intensive fuels.

In addition to talks with SOCAR over Azerbaijani LNG, Bharat Petroleum also plans to buy liquefied petroleum gas (LPG) from the United States at competitive prices to diversify its supply portfolio and has announced a tender in that regard.

The potential cooperation with Azerbaijan builds on recent energy partnerships between the two countries. At India Energy Week 2025, SOCAR signed a memorandum of understanding (MoU) with India’s Oil and Natural Gas Corporation (ONGC) and Mangalore Refinery and Petrochemicals Ltd (MRPL), covering areas including crude oil and LNG supply, petroleum product trading, and technical collaboration. This agreement has been seen as a step toward deeper strategic energy engagement between Azerbaijan and India.

India’s interest in LNG imports comes amid broader global trends: major energy traders and refiners have signaled growing demand for both LNG and other petroleum products in the country’s expanding energy market. The drive to secure diverse suppliers aligns with India’s long-term goals of energy security and economic resilience.

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