The recent sanctions imposed by the United States on Russia, coupled with warnings of further punitive measures by the new Trump administration, are expected to have limited impact on India’s energy security, according to Indian Oil Corporation (IOC) Chairman Arvinder Singh Sahney. Speaking from Davos, Sahney emphasized that India has diversified its energy sources and is well-prepared to navigate any disruptions.
“It is not a very difficult thing to handle because it has a very limited effect. Whatever sanctions are there, we are abiding by them,” Sahney said. He highlighted India’s extensive network of energy suppliers, including OPEC nations, OPEC+, and other non-OPEC sources like the Gulf, Guyana, Brazil, and even the United States.
The comments come days after President Donald Trump took office and called for a resolution to the ongoing Russia-Ukraine conflict. Trump warned of additional economic measures, including taxes, tariffs, and sanctions, against Russia. These add to the extensive sanctions already imposed by the Biden administration since the Ukraine war began in February 2022.
Despite the geopolitical tensions, Sahney reassured that India’s crude oil supply would remain stable, noting the government’s willingness to increase exposure to US crude.
On international crude prices, Sahney projected they would remain range-bound between USD 75 to USD 80 per barrel, with a bias toward USD 75. “Although I have an interest in seeing them on the lower side, our detailed assessments suggest that prices will stay around USD 75,” he said. As of now, crude prices hover at approximately USD 75.5 per barrel.
City Gas Expansion and Green Energy Initiatives
Discussing IOC’s plans for city gas distribution, Sahney stated that the company already operates in 47 geographical areas and is focused on expanding infrastructure and providing more connections. “We have our hands full with the CGD business and are doing our best to develop infrastructure,” he said.
On green hydrogen development, Sahney revealed that IOC’s Panipat plant, with a production capacity of 10,000 tonnes per annum, would be commissioned within two years. “We have received excellent bids, and the tenders are under evaluation. The project will be awarded within a month,” he noted.
India’s push for green hydrogen aligns with its broader National Green Hydrogen Mission, launched in January 2023, with an investment of Rs 19,744 crores. The initiative aims to achieve a production capacity of 5 million tonnes by 2030, reducing dependence on fossil fuels and addressing climate change challenges.
Sahney also confirmed that IOC currently has no active acquisition plans but remains committed to its ongoing projects.
(Inputs from ANI)
