India keen to raise oil imports from Brazil

India, the world's third biggest oil importer and consumer, is keen on raising oil imports from Brazil as it looks to diversify its purchases.

"The Indian side expressed interest for sourcing crude oil under long-term special contracts," an official statement said after Oil Minister Hardeep Singh Puri met visiting Brazilian Energy Minister Bento Albuquerque here.

India currently imports only a small fraction of oil from Brazil and its main sources are in the Middle East and the US.

Also, Indian firms are looking at boosting investment in the South American nation.

"The leaders reviewed the existing bilateral cooperation across the entire spectrum of the energy sector and committed to enhance the beneficial partnership between the countries, and in this context expressed satisfaction at the important role bilateral energy cooperation plays in deepening the strategic partnership between the two countries," the statement said.

The two sides recognized the importance of the robust investment in the Brazilian oil and gas sector made by Indian companies and reaffirmed their commitment to safeguard existing investments, while encouraging further bilateral investments.

"The two sides highlighted the importance of the bilateral trade in oil and its by-products, and expressed their willingness to expand this mutually beneficial trade," it said.

Stating that the two sides agreed to strengthening the bilateral cooperation in bioenergy, it said an Indian-Brazil Alliance for Bioenergy and Biofuels will be worked out.

They agreed to work together on technical aspects of vehicle use of ethanol-20 blends in current fleets and technical aspects of higher blends of ethanol use in flex-fuel vehicles.

Flex-fuel technologies – four-stroke and two-stroke engines (Otto Cycle), biodiesel implementation, biogas / biomethane policy and incentives - and efficient heat and power generation in sugar and ethanol plants were other areas agreed to.

"The two ministers stressed the importance of a constant engagement between the private and public stakeholders of both countries, in order to forge strong and dynamic cooperation in bioenergy and biofuels," it said.

The two sides also agreed that it is critical to reinforce the promotion of sustainable bioenergy and biofuels at the global level, which would diversify options for energy security, boost rural development, bring about technological and industrial innovation, and create jobs and opportunities while reducing local and global emissions.

"They further agreed that a thriving international market for sustainable bioenergy and biofuels will be essential to the design of low-carbon global vehicle platforms, as well as to the development of new technologies and the establishment of economies of scale in the bioenergy sector.

"To that effect, and under the spirit of the India-Brazil cooperation in bioenergy and biofuels, the ministers agreed to, in coordination with the other competent national authorities, make a concerted effort to position sustainable bioenergy and biofuels as integral parts of the global energy transition, especially for transport, industry, and other difficult-to-decarbonize sectors, such as aviation and shipping," it added.

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