The Trump administration wants to boost energy exports to India, the US ambassador in New Delhi said on Wednesday, ahead of a multi-day visit by Secretary of State Marco Rubio to the world’s most populous country.
“India has been receptive to diversification, and what that means is buying more American energy,” Ambassador Sergio Gor said in a phone interview. “People have been very receptive to buying from the United States, and we’ve been very happy with that.”
India is struggling with an energy crisis caused by the nearly three-month-long war against Iran that the US and Israel launched in late February. In response, Iran effectively shut the Strait of Hormuz, a vital waterway for global energy flows – crimping supplies and sending Brent crude up more than 50 percent since the war started.
Asked about the pressure on India as a result of the war, Gor blamed Iran for closing the strait. “The blame is not on the United States,” he said, adding that the US Treasury Department has let India buy Russian oil that would otherwise be subject to sanctions.
India is a major energy importer. Before the war, India was heavily reliant on Hormuz for supplies of liquefied petroleum gas, used in cooking fuel, with about 90 percent of India’s LPG imports coming through the waterway.
New Delhi is set to import record amounts of LPG and liquefied natural gas from the US in May, according to predictive data from Kpler, underlining the importance of the US to the South Asian nation’s energy security.
“The US, as growing exporter of oil and LNG, will naturally have its sights on Asia and within the region, especially India and China,” Vandana Hari, founder of analysis firm Vanda Insights said. “Washington must see India as an easier market to penetrate and grow in.”
The State Department said Rubio’s trip will focus on energy security, trade and defense cooperation. Gor added the top US diplomat will also meet his counterparts from the Quad grouping that includes India, Japan and Australia.
He predicted that Trump will travel to India again, having made his first visit in 2020.
“The big thing that we want to showcase here is how vitally important this relationship is for both sides,” Gor said. Rubio’s trip is “an indication of the interest, and also the partnership that we have, that we want to grow.”
Gor said announcements will be made about the Quad, which is broadly seen as an effort to check China’s growing power in Asia. He wouldn’t provide details in order not to “preempt” the visit, but highlighted technology-sharing and growing military sales between the US and India.
The four-day trip to New Delhi, Kolkata, Agra and Jaipur – beginning on Saturday – is a departure for Rubio, who has tended to stay in countries for less time as he balances his role as the top US diplomat with being President Donald Trump’s National Security Advisor.
Gor oversaw the hiring process for thousands of Trump political appointees before being tapped for ambassador to the world’s fifth-largest economy. Part of Gor’s work since arriving in New Delhi in January has been overcoming US-India tensions.
Last May, Trump took credit for intervening to end clashes between India and Pakistan, saying he prevented a potential nuclear war. Pakistan nominated Trump for the Nobel Peace Prize. But New Delhi rejected Trump’s version of events, causing a rift, as a result of a long-standing Indian policy insisting issues with Pakistan be dealt with bilaterally, without third parties.
The relationship was further strained when Trump in August slapped an additional 25 percent tariff on Indian goods over purchases of oil from Russia, the subject of Western sanctions to pressure President Vladimir Putin over his war in Ukraine. The dynamic has since reversed, with the US allowing Russian crude purchases to offset the supply disruption resulting from the Iran war.
While negotiations had been taking place for months, Gor said he helped give “the little final push” to get an interim deal a few weeks after his arrival in India, resulting in a reduction in tariffs on Indian goods. Gor said he expects the deal, initially announced by Trump in February, to be signed “very soon” after legal language is finalized.
The trade deal also factors in India buying lot more energy from the US. However, “the longer distances and higher freight costs, plus the low suitability of the US’ mostly light-sweet grades for Indian refiners are key considerations,” Hari said. “So, promises might be made, but how much the buying patterns shift for the long term is a question-mark.”
Gor also touted $20.5 billion of investments in the US by Indian companies announced this month, with most in the pharmaceutical industry.
