India’s crude oil import bill surged 47% year-on-year (YoY) to $15.4 billion in September, amid resurging conflict in West Asia, according to provisional government data.

Data from the Petroleum Planning and Analysis Cell (PPAC) showed that crude oil imports rose 7% YoY to 21.7 million metric tonnes (MMT) in September, even as shipments of liquefied natural gas (LNG) were about 8.5% lower although import bill stayed almost flat.

The increase in import costs widened India’s net oil and gas import bill — calculated as imports of crude oil, petroleum products and gas minus exports of petroleum products — by 39.6% to $13.4 billion during the month.

Petroleum product exports declined 24.2% to 4.7 MMT in September, while revenue accrued from the exports accelerated about 20% to $4.8 billion, according to the data.

In contrast, LNG imports declined 8.5% to 2,957 million standard cubic metres (MMSCM) in September, from 3,233 MMSCM in the corresponding month last year. However, the LNG import bill remained almost unchanged at $1.2 billion.

The Abu Dhabi National Oil Company (ADNOC) is open to further long-term liquefied petroleum gas (LPG) supply agreements with India and sees significant potential to deepen cooperation across crude oil, liquefied natural gas (LNG), naphtha, trading, shipping and strategic storage, Nasser Omair Al Muhairi, its Acting CEO (downstream industry, marketing and trading business) told The Hindu in an exclusive interaction.

“By combining [ADNOC’s] supply, trading and shipping capabilities, ADNOC is well positioned to provide Indian customers with reliable long-term LPG access, greater flexibility and enhanced energy security,” he said..

Mr. Al Muhairi described India as one of ADNOC’s most important energy markets.

Building on LPG supply agreement

Indian Oil had signed a strategic collaboration agreement with ADNOC in May during Prime Minister Narendra Modi’s visit to the United Arab Emirates (UAE). The agreement seeks to expand LPG supply and trading opportunities, including through ADNOC’s global trading unit, and potentially pave the way for a long-term sale and purchase agreement, building on the LPG term contract in place since 2023.

Mr. Al Muhairi said ADNOC’s “reliability, operational resilience and proximity” to key demand centres positioned it as a trusted partner in meeting India’s growing energy needs.

India among top energy markets

ADNOC supplied more than 500,000 barrels of crude oil a day to India in 2025, accounting for “almost one in ten barrels of [India’s] crude imports”, Mr. Al Muhairi said. The company is also among India’s leading suppliers of LNG and naphtha.

“Building on this foundation, we see significant opportunities to deepen cooperation across crude, LNG, LPG, naphtha, trading, shipping and strategic storage,” he said.

ADNOC’s ambition, he added, extended beyond supplying more energy to Indian customers to providing “greater security and flexibility while supporting investment and growth across the energy value chain.”

Expanding supply capacity

Mr. Al Muhairi said that ADNOC is working to increase its oil production capacity to five million barrels a day by 2027. It is also expanding domestic gas production and broadening access to global LNG supplies.

“Recent market conditions have reinforced the value of this integrated approach, with logistics and export infrastructure helping maintain reliable and flexible supply during periods of disruption,” Mr. Al Muhairi said.

Strategic storage plans

ADNOC is also exploring opportunities with Indian Strategic Petroleum Reserves Ltd. (ISPRL) to expand storage of crude oil, LNG and LPG, including strategic reserves.

“Our (ADNOC’s) immediate priority is advancing commercial and regulatory work with Indian Strategic Petroleum Reserves Limited (ISPRL) to determine capacities, investment and timelines,” Mr. Al Muhairi said.

The collaboration envisages increasing ADNOC’s crude oil storage capacity in India to as much as 30 million barrels. This includes the existing 5.86 million barrels of storage in Mangaluru and potential new facilities in Visakhapatnam and Chandikhol.

The two sides are also exploring the possibility of storing crude oil at Fujairah in the UAE as part of India’s strategic petroleum reserve network.