BPCL, Trafigura Sign Crude Oil Supply Agreement Amid Rising Energy Demand

Bharat Petroleum Corporation Limited (BPCL), one of India's state-run refiners, and Trafigura, a market leader in the global commodities industry, announced a new crude oil supply agreement signed during the recently held India Energy Week.

Under the agreement, Trafigura has been awarded a tender to supply Iraqi Basrah and Oman crude oil to BPCL on term basis. Delivery will begin in April 2026.

This marks the first agreement of its kind for BPCL for imports of Basrah crude, representing a strategic milestone in the company's procurement approach and strengthening India's energy security framework.

Manoj Heda, Executive Director International Trade, BPCL, said, “This competitively priced term contract strengthens our crude oil procurement strategy and enhances India's energy security. By leveraging market opportunities, we ensure a reliable and cost-effective supply of crude oil for our refining system, which is crucial to meeting the nation's growing energy demands.”

Sachin Gupta, CEO of Trafigura India, commented, "We are delighted to be supplying BPCL in this new agreement. Trafigura's expertise, global reach and extensive supply chain capabilities allow us to source the crude oil BPCL needs for its refining requirements and growing consumer base in India. The agreement supports Trafigura’s growing role in supplying natural resources to India to support ongoing economic growth and increasing energy demand."

Growing Demand Observed

Indian Oil Corp (IOC), the country's largest refiner, had signed a five-year signed a five-year import deal with Trafigura to purchase 2.5 million metric tonnes of LNG in a deal valued at $1.3bn-$1.4bn.

Citing IOC's Head of Marketing, SP Srivastava, Business Standard, reported that the company expects annual diesel demand to grow by 2-3% and gasoline demand to increase by 5-6% by 2030.

It signed a preliminary agreement with Paris-based Engie at India Energy Week for LNG and other natural has trading opportunities in the Asia-Pacific region, reported Business Standard quoting AS Sahney.

It signed a preliminary agreement with Paris-based Engie at India Energy Week for LNG and other natural has trading opportunities in the Asia-Pacific region, reported Business Standard quoting AS Sahney.

According to S&P Global report, Petronet LNG forecasts LNG imports will rise to 28mn-29mn tonnes in 2025 from 25.5mn tonnes last year.

Reports say that trading giant Vitol expects most of India's refinery output to be absorbed domestically.

"There is 500,000 (barrels per day) of refining capacity coming online," Kieran Gallagher, Vitol's Asia head told Reuters.

"Outside...summer seasonality and exports, largely the products derived from that capacity are going to be consumed within the country itself," Gallagher added.