Strengthening India-US Relations: How PM Modi’s Meeting with Trump Could Unlock Groundbreaking Nuclear Deals

As Prime Minister Narendra Modi prepares to meet with US President Donald Trump on February 12-13, the focus will be on nuclear energy and energy trade between India and the United States. Key topics could include small modular reactors and liquefied natural gas (LNG) contracts, which aim to enhance cooperation in the energy sector.

India is making a significant push for nuclear power to reduce carbon emissions. Oil and Gas Minister Hardeep Singh Puri confirmed that nuclear energy will be central to Modi’s discussions with Trump. He stated, “Oh, absolutely! It is on the agenda,” during the India Energy Week conference.

The Indian government has pledged considerable funding for nuclear research and is reforming policies to attract private investment in the sector. However, challenges remain, particularly with strict nuclear liability laws that hold operators responsible for accidents.

Despite these challenges, NTPC Ltd., India’s largest power producer, is in discussions with international technology providers to expand its nuclear energy capabilities. This move aligns with a global trend where nuclear power is regaining popularity as a reliable, low-carbon source of electricity.

In addition to nuclear energy, Modi and Trump are set to explore ways to boost energy trade between the two nations. The US has become a key supplier of crude oil and LNG to India. Puri noted, “I’d be surprised if sourcing of energy from the US does not figure in the talks,” underlining Trump’s commitment to increasing energy supplies and stabilizing oil prices.

Indian state-owned companies like Indian Oil, GAIL, and Bharat Petroleum are negotiating long-term LNG contracts with US suppliers. While India sources crude oil from almost 40 countries, it has fewer options for LNG suppliers. It’s crucial for India to diversify its LNG resources, especially since a significant amount of its LNG imports from Qatar are tied to crude oil prices.

Oil Secretary Pankaj Jain mentioned that India is seeking a balanced strategy that includes both crude-indexed and gas hub-indexed LNG contracts. This approach aims to minimize price volatility and secure stable energy supplies for the future.

Additionally, Indian companies are looking to invest in US LNG infrastructure. Jain explained, “We are always open to attractive deals… It has to make economic sense.” GAIL has been searching for equity stakes in US liquefaction terminals, although finding the right opportunity has proven challenging. The company already has a long-term agreement to purchase 5.8 million tonnes of US LNG annually, linked to the Henry Hub price benchmark.

With the US as the world’s largest oil and gas producer and top LNG exporter, the upcoming talks between Modi and Trump could solidify India’s position as a crucial energy partner in the global arena.



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