US looking to become huge source of India’s energy needs: State dept official

• Senior US state department official says India has long sought to diversify its energy sources because of massive requirements, amid new US sanctions powers targeting buyers of Russian oil and gas.

• Official says Trump’s new sanctions legislation gives him another tool to pressure countries buying Russian energy, but stressed that the powers may not necessarily be used immediately and include a national security waiver.

• Washington is seeking to position the US, Venezuela and other markets as alternative energy sources for India, with the official saying bilateral discussions on energy diversification are already taking place frequently.

India has long been looking to diversify its energy sources given its massive energy needs, and the US is seeking to meet some of that demand, a senior state department official has said.

The comments came after US President Donald Trump last week signed into law the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which authorises him to impose tariffs of up to 100 per cent on countries buying Russian oil and gas, including India and China.

The legislation is named after the late Senator Lindsey Graham, who had proposed a sanctions Bill that included tariffs of up to 500 per cent on countries purchasing Russian oil.

Asked about the Bill and India’s concerns over its potential implications for bilateral ties, the official said the US Congress had taken a "pretty hard approach", particularly in public. "India has been looking for a long time to diversify its energy sources. They're a country that has massive energy needs," the official said.

He said Washington understood India’s response to the legislation, given that members of Congress had singled out the country over its purchases of Russian energy. "You had members of Congress calling out India in particular, so of course India has to respond. We understand that. They have a domestic constituency, as do we. Like, there is no sort of hard feelings on any of that kind of activity," he said.

Responding to a PTI question on India’s concerns, the official said the legislation had given Trump "a new tool in his toolbox".

"That doesn't necessarily mean he deploys it tomorrow, but he has the opportunity to. His focus is on ending this war. It's been something he campaigned on and something he's been dedicated to from the beginning," he said.

"We're looking for our friends, especially like India, to help support that effort. But I think you'll have to stay tuned on how the Bill gets implemented. But there is a broad national security waiver, so you can imagine also the president, there's a scenario, the president uses that as well," he added.

The official said India’s options for sourcing energy had previously been limited because Venezuelan and Iranian supplies had been cut off from international markets.

"Now, with President Trump's incredibly successful operation in Venezuela, we are moving into a better position that countries like India are going to be able to get access to that market," he said.

He said India was particularly interested in Venezuelan energy supplies and had previously operated refineries in the country, but reviving them would be complicated because of damage caused to the industry under the Nicolás Maduro government.

"We are looking to also become a huge source of India's energy needs. We're increasing our hydrocarbon exports," the official said, adding that the US is now the world's largest exporter of LPG and the second-largest exporter of LNG.

"The demands are great, and the needs for oil are there. We are looking for alternatives," he said.

The official said discussions on energy diversification take place frequently between the two countries, including between External Affairs Minister S Jaishankar and US Secretary of State Marco Rubio.

"But I would say before even the war, India had been looking to diversify when it came to energy for a long time. It's not a new concept. We just need to expedite it faster," he said.

With PTI inputs