Modi’s six-day visit starts in the United Arab Emirates before continuing to the Netherlands, Sweden, Norway and Italy, with New Delhi seeking to secure energy supplies and deepen economic ties with Europe following the India-European Union free trade agreement finalized in January.

The trip comes as disruptions around the Strait of Hormuz and Gulf maritime corridors continue to pressure energy-importing economies. India, the world’s third-largest oil buyer, typically sources nearly half of its crude imports through the strategic waterway.

India’s foreign ministry said discussions in the UAE would focus on “strengthening our energy security,” including cooperation on oil and liquefied petroleum gas supplies. The Gulf nation hosts an Indian diaspora estimated at 4.5 million people and remains one of New Delhi’s key energy partners.

Analysts said the visit reflects India’s broader push to diversify strategic partnerships while positioning itself as an alternative manufacturing and technology hub amid shifting geopolitical alignments and supply-chain realignments away from China.

“The recently concluded India-EU free trade agreement has already created momentum,” former Indian ambassador Anil Wadhwa told AFP, adding that India was seeking to position itself as a “trusted economic, technological and clean energy partner.”The European leg of the tour will focus heavily on trade and investment cooperation.

Modi is scheduled to meet Dutch leaders later on Friday for talks expected to cover bilateral trade, defense cooperation, semiconductors, water management, agriculture and healthcare.India and the EU concluded a landmark free trade agreement in January, which Modi described as the “mother of all deals.” European policymakers increasingly view India, the world’s most populous country, as a critical market and strategic counterweight in Asia.

In Sweden, Modi will attend a European business leaders forum alongside Ursula von der Leyen before traveling to Oslo for an India-Nordic summit, marking the first visit by an Indian prime minister to Norway in more than four decades.

Former Indian ambassador K.C. Singh said the Gulf leg of the visit also reflected changing regional alignments following escalating Middle East tensions.“A new international environment now prevails,” Singh told AFP, citing fractures within the Gulf Cooperation Council and growing strategic competition involving Iran, Gulf states, the United States and Israel.

Modi also met Iranian Foreign Minister Abbas Araghchi in New Delhi on Thursday ahead of the trip, underlining India’s effort to maintain diplomatic engagement across rival regional blocs.Energy analysts said New Delhi could pursue agreements linked to strategic petroleum reserves and long-term LPG supply arrangements to reduce vulnerability to price shocks and shipping disruptions.

The Nordic portion of the tour is also expected to include discussions on Arctic cooperation and climate-linked shipping routes. India operates a research station on Norway’s Svalbard archipelago and has increasingly monitored the commercial and environmental implications of melting polar sea ice.

Indian lawmaker Shashi Tharoor wrote in the Indian Express that India and Nordic nations shared interests in preserving international stability “at a time when the turbulence of the Trumpian era has unsettled global norms.”

The final stop of Modi’s tour will be Italy on May 19, where he is expected to meet Prime Minister Giorgia Meloni for talks on bilateral cooperation and regional security issues.

The planned accord, expected to be signed by Nigerian President Bola Tinubu and Mohammed VI, follows the completion of preliminary technical studies for the project, also known as the African Atlantic Gas Pipeline.

Nigeria’s foreign ministry said the development was discussed during a telephone conversation last Friday between Foreign Minister Bianca Odumegwu-Ojukwu and Moroccan Foreign Minister Nasser Bourita.

The pipeline project, first agreed roughly a decade ago, is designed to span about 6,900 kilometers along a hybrid offshore and onshore route linking Nigeria to Morocco through several West African countries.

Amina Benkhadra, head of Morocco’s state hydrocarbons and mining agency ONHYM, told Reuters last month that the project would have a maximum annual capacity of 30 billion cubic meters of gas, including around 15 billion cubic meters intended for Morocco’s domestic market and onward exports to Europe.

The initiative forms part of broader efforts by African producers to strengthen regional energy integration and capitalize on European demand for alternative gas supplies following disruptions to global energy markets in recent years.

Nigeria, Africa’s largest natural gas producer, has long sought to expand export infrastructure beyond existing liquefied natural gas facilities, while Morocco has positioned itself as a strategic energy transit hub between Africa and Europe.

The two governments also discussed expanding cooperation in fertilizer production and distribution, highlighting the sector’s role in strengthening food security across Africa, according to the Nigerian foreign ministry.

Both sides further emphasized reviving the Nigeria-Morocco Business Council to encourage trade and investment under the framework of the African Continental Free Trade Area and an existing bilateral double taxation treaty.

Despite softer oil prices, energy giants Shell and TotalEnergies reported strong, stable results that reflect disciplined strategy, investor confidence, and growing opportunities in natural gas and refining — reinforcing their leadership in the global energy transition.

Shell and TotalEnergies, two of the world’s leading energy companies, showcased steady performance in their latest quarterly results, demonstrating resilience and strategic adaptability amid fluctuating oil prices.

While both firms reported modest declines in profit, they continued to deliver solid shareholder returns, strengthened their balance sheets, and reaffirmed their commitment to long-term growth in liquefied natural gas (LNG) and downstream operations.

Shell reported adjusted earnings of $5.4 billion for the quarter ending September 30, surpassing analyst expectations of $5.09 billion.

The company’s strong showing was supported by robust results from its gas and upstream businesses, which performed better than anticipated despite weaker commodity prices.

This underscores Shell’s ability to leverage its diversified portfolio and trading expertise to sustain profitability even in challenging market conditions.

The energy major also maintained its $3.5 billion share buyback program for the quarter, reflecting continued confidence in its financial stability. Over the past four years, Shell has repurchased more than a quarter of its outstanding shares, enhancing value for investors.

Combined with dividends of $2.1 billion, Shell’s shareholder returns over the last four quarters represent nearly half of its operating cash flow, in line with its long-term payout targets.

Shell CEO Wael Sawan emphasized the company’s commitment to balancing profitability with energy transition goals. He noted that while short-term oil supply dynamics remain uncertain, the company is well-positioned for the future through its expanding LNG portfolio.

Shell continues to bet on rising global demand for liquefied natural gas, especially as countries accelerate their shift toward cleaner energy sources.

Shell’s integrated gas unit — the world’s largest LNG trading business — once again proved to be a key profit driver. The segment benefited from favorable trading conditions and resilient demand across Asia and Europe.

Looking ahead, Shell expects the LNG market to stabilize next year, with potential imbalances depending on the timing of new global projects.

The company’s cash flow from operations stood at $12.2 billion, down from $14.7 billion a year earlier, but still indicative of strong underlying performance.

Shell’s gearing, or debt-to-equity ratio, dipped slightly from the previous quarter and remains within comfortable levels. The company’s focus on disciplined capital spending and operational efficiency continues to strengthen its financial foundation.

Meanwhile, French energy major TotalEnergies also delivered a stable performance, with adjusted net income of $4.0 billion for the quarter, slightly lower than last year’s $4.1 billion.

The results aligned with market expectations and reflected strong upstream production, higher refining margins, and disciplined cost control.

TotalEnergies’ downstream operations stood out with an impressive 76% jump in profits, boosted by surging European refining margins.

The increase was driven by the European Union’s ban on fuel imports derived from Russian crude oil, which reshaped the continent’s energy supply landscape.

CEO Patrick Pouyanné noted that refining margins are expected to remain strong, projecting an average near $100 per ton in the next quarter.

Despite the external headwinds, TotalEnergies remains focused on financial discipline. The company will scale back its share buybacks slightly in the coming quarter to maintain balance sheet strength and manage debt responsibly.

Its gearing ratio improved quarter-on-quarter to 17.3%, reflecting prudent financial management.

Both Shell and TotalEnergies are navigating a complex energy landscape marked by evolving demand patterns, climate commitments, and geopolitical uncertainty.

Yet, both companies continue to balance short-term performance with long-term transformation. Shell’s emphasis on LNG expansion and TotalEnergies’ success in refining and low-carbon initiatives signal strategic foresight as the global energy system evolves.

Brent crude prices averaged around $68 per barrel during the quarter, lower than last year’s $78 average, while European gas prices also eased.

Despite this softer pricing environment, both companies’ results highlight their ability to sustain profitability through diversification, trading strength, and capital efficiency.

As the energy industry undergoes rapid change, Shell and TotalEnergies are proving that adaptability and forward-thinking strategies can yield stability even in uncertain times.

By investing in LNG, renewables, and refining modernization, they are positioning themselves not just for immediate recovery but for leadership in a lower-carbon future.

Investors remain cautiously optimistic about the sector’s outlook. Both firms’ continued focus on shareholder returns, disciplined investment, and innovation in cleaner technologies demonstrate how traditional energy leaders are redefining their roles in the global energy transition.

In a year marked by volatility, Shell and TotalEnergies have shown that strategic resilience, operational excellence, and a clear focus on long-term growth remain the cornerstones of enduring success in the evolving energy landscape.

MidOcean is owned and managed by U.S. investment firm EIG Partners, which led a consortium to buy a 49% stake in Aramco’s oil pipelines business in 2021, a deal that raised $12.4 billion for Aramco.

“This is an important step in Aramco’s strategy to become a leading global LNG player,” Aramco Upstream President Nasir K. al-Naimi said in a statement, which did not disclose the size of the stake.

“MidOcean Energy is well-equipped to capitalise on rising LNG demand, and this strategic partnership reflects our willingness to work with leading international players,” he added.

MidOcean is in the process of buying interests in four LNG projects in Australia as part of its growth strategy to create a global LNG business, the statement said.

In October 2022, MidOcean said it agreed with Tokyo Gas Co to buy the Japanese company’s stakes in a portfolio of four Australian LNG projects for $2.15 billion.

Sources told Reuters in July EIG was tapping international investors, particularly in the Middle East, to buy into MidOcean, which is part of a consortium taking over Australia’s Origin Energy for $10.2 billion.

Aramco President and Chief Executive Amin Nasser said the deal strengthened Aramco’s relationship with EIG and “gas will be important in meeting the world’s rising need for secure, accessible and more sustainable energy”.

In March, Nasser had said that Aramco actively looking at LNG opportunities globally.

Aramco’s acquisition of the MidOcean stake is subject to regulatory approvals among other conditions.

“While our initial focus is on the announced transactions in Australia, we believe the opportunity set is global,” EIG Chairman and Chief Executive Blair Thomas said in the statement.

The beefed-up trading presence of Chinese importers puts them in direct competition with such global heavyweights as Shell (SHEL.L), BP (BP.L), Equinor (EQNR.OL) and TotalEnergies (TTEF.PA) for a market that the International Energy Agency says doubled in value to $450 billion last year.

About a dozen Chinese companies have been expanding trading teams or adding new desks, with privately run ENN Natural Gas (600803.SS) and state-run China National Offshore Oil Corp (CNOOC) the latest to plan London offices, and utility China Gas Holdings (0384.HK) setting up a Singapore operation, company officials and traders said.

Chinese gas importers have also boosted long-term LNG contracts with Qatar and U.S. suppliers by nearly 50% since late 2022 to more than 40 million metric tons per year (mtpy), with plans to add more volumes from those two countries, as well as from Oman, Canada and Mozambique, traders and analysts said.

“We’re going to see a paradigm shift in Chinese companies from being total net importers to (being) more international and domestic trading players,” said Toby Copson, Shanghai-based head of global trading for Trident LNG.

Already, state-run PetroChina , Sinopec , Sinochem Group and CNOOC are actively trading volatility to capitalise on their long portfolios, Copson said.

China vies with Japan to be the world’s largest LNG importer, although it’s not clear how much surplus or other volumes Chinese companies might have available to trade.

PetroChina International (PCI), trading arm of PetroChina and China’s largest gas trader with a 100-strong global team in Beijing and four other international offices, imported or traded about 30 million tons of LNG last year.

Zhang Yaoyu, PCI’s global head of LNG trading, declined to comment on the company’s traded volume, but said trading was part of the company’s overall strategy.

“Supply security is still at the heart of our business activities. Trading capability is one of the enablers … to help us better deal with market swings,” Zhang said.

By 2026, Chinese companies are expected to have contracted LNG supplies of more than 100 million tons a year. That could mean a surplus of up to 8 million tons that year, according to consultancy Poten & Partners, or a deficit of 5 million to 6 million tons based on estimates from pricing agency ICIS.

Either way, China’s growing domestic output and more piped gas from Central Asia and Russia provide enough of a fuel base that Chinese gas companies can trade or swap U.S. and other portfolio cargoes when arbitrages open or it makes market sense.

“I could see China becoming a seasonal seller to places like Southeast Asia, South Korea and Japan, as well as into Europe,” said Jason Feer, head of business intelligence at Poten & Partners.

U.S. LNG contracts are done on a free-on-board (FOB), open basis with no restrictions on destination, and consultant Rystad Energy estimates U.S. volume will make up a quarter of China’s long-term contracts by 2030.

Qatar, which will be China’s largest supplier for 2026, however, offers traditional LNG contracts that are restricted to a single destination or country.

Big Push In A Shifting Market

Russia’s invasion of Ukraine last year forced European buyers to raise LNG imports by two-thirds to replace lost Russian piped gas. This created an outlet for companies with available supplies, and Chinese, Japanese and South Korean companies pounced as global LNG prices surged and the value of the market doubled.

European users have also been reluctant to sign long-term contracts because of decarbonisation goals, and Asian gas traders and importers have been sending LNG to Europe during spring and summer to fill storage tanks there, Feer said.

PCI as well signed a deal in May to use Rotterdam’s Gate regasification terminal for 20 years, a first for a Chinese company in Europe.

These openings in the market and a more liberalised domestic gas market have also prompted smaller Chinese gas distributors and importers to expand into the trading space.

China Gas Holdings, for instance, which has signed contracts for 3.7 million tons per year for U.S. LNG, is hiring its first two traders for a new office in Singapore and is looking to secure more contracts, a company executive told Reuters.

It joins ENN, Beijing Gas, Zhejiang Energy and JOVO Energy (605090.SS) in establishing a trading presence in the Southeast Asian energy hub.

“Compared to Japanese firms, Chinese are way more aggressive in expansion, with PCI and Unipec among the best payers offering comparable packages as the global majors,” as they look to fill out trading desks, said a Singapore-based recruiter.

The deal would be part of GAIL’s plans to lock in new supply contracts by 2030 to diversify its gas imports and hedge against supply disruptions like those seen after Russia’s invasion of Ukraine last year, when LNG prices surged to a record high.

Neither state-controlled GAIL nor QatarEnergy responded to Reuters requests for comments.

GAIL had to cut gas sales to some local industries last year after supplies under its long-term deal with the German unit of Russia’s Gazprom were hit when it was taken over by Berlin, which diverted volumes to its own market.

Qatar, the world’s top LNG exporter, is looking to sign record volumes of long term sales contracts this year as it expands market share globally at the expense of Russia.

GAIL, India’s largest pipeline operator, would be the second local company to sign a deal with Qatar. Petronet LNG (PLNG.NS), part owned by GAIL, is also negotiating an extension to beyond 2028 of its long-term LNG deal, under which Qatar supplies 8.5 million tons per year (tpy) of LNG.

A deal with GAIL would strengthen prospects for the renewal of Petronet’s deal at better pricing, said one of the sources, adding India’s target is to sign the two deals by end-September.

GAIL is looking to buy 1 million to 1.5 million tpy of LNG from QatarEnergy, the sources said.

Indian companies are investing billions of dollars to build gas infrastructure and scouting for long-term deals to raise the share of natural gas in the country’s energy mix to 15% by 2030 from about 6.5% now.

GAIL plans to buy an additional 7 million to 8 million tpy of LNG by 2030 but does not intend to depend on one country for more than 1 million to 2 million tpy of that to avoid the risk of sudden disruption, its head of finance Rakesh Jain said on Monday.

The company has two existing contracts to buy a combined 5.8 million tpy of LNG from the United States and a 2.5 million tpy supply contract with SEFE, the former German Gazprom unit.

Asia has outpaced Europe in locking in long-term supply from Qatar’s two-phase expansion plan that will raise its liquefaction capacity to 126 million tpy by 2027 from 77 million.

Qatar has so far signed three LNG supply deals with buyers in China and Bangladesh and is also in advanced talks with Thailand’s state energy firm PTT (PTT.BK).

Doha (Reuters) – Japanese Prime Minister Fumio Kishida agreed to strengthen energy ties and economic cooperation with major gas producer Qatar on Tuesday, the final leg of a Gulf tour that has focused on securing energy supplies and promoting Japanese high tech.

Kishida, who has been urged by Japan’s gas lobby to secure new liquefied natural gas (LNG) supplies from Qatar, held talks with the emir, Sheikh Tamim bin Hamad al-Thani. They agreed to upgrade their countries’ relationship to strategic from comprehensive, “especially in energy, economy, defence, security and academic exchange,” the emir’s office said.

The two countries did not announce new LNG deals on Tuesday, but Kishida told Sheikh Tamim that “LNG serves a crucial role in Asia for a realistic energy transition,” according to a Japanese foreign ministry statement.

Kishida emphasized that Japan had been the country to gain consensus from the G7 on the importance of natural gas and LNG investments, the statement said, “based on the understanding that mid- to long-term investment in such energy is indispensable for the G7.”

Competition for LNG has ramped up since the Russian invasion of Ukraine in February 2022, with Europe in particular needing large amounts to help replace gas piped from Russia.

Qatar’s minister of state for energy and the QatarEnergy CEO attended the meeting between the two leaders alongside other officials, the Qatar statement said.

Japan, which remains highly dependent on oil and gas imports, did not renew several long term LNG contracts with Qatar when they lapsed in 2021 and 2022, significantly reducing gas imports from one of the world’s top LNG exporters.

Meanwhile, several other Asian buyers have signed long-term LNG supply contracts with Qatar, including a pair of record-length 27-year deals with Chinese importers for gas from Doha’s North Field expansion, which will increase the Gulf Arab state’s gas production by more than 60%.

“Coordination with Qatar is extremely important for stabilizing global liquefied natural gas markets,” the Japanese foreign ministry said in a document outlining the objectives of the Qatar talks.

QatarEnergy has said it expects to sign supply contracts for nearly all of the new North Field volumes in 2023.

Kishida’s Qatar visit follows a stop in Saudi Arabia on Sunday in which Riyadh said it remained committed to securing oil supplies for Japan and would continue cooperating with Tokyo on clean hydrogen, ammonia and recycled carbon fuels.

In Abu Dhabi on Monday, Kishida and UAE leaders agreed to a new scheme to accelerate energy security, as well as a framework for the UAE to invest Japanese chip and battery technology.

About 40% of new global LNG output will come from Qatar by 2029, said Minister of Energy Saad al-Kaabi at the LNG 2023 conference. The country last year approved expansion projects that will boost its LNG output by 64% to 126 million tons per year by 2027.

“Some people say by 2050 you do not need gas anymore. I say you need more gas. You need gas as a baseline to support wind and solar since the sun does not shine all the time and the wind does not blow all the time,” said al-Kaabi.

Demand for the super cooled gas sky rocketed following Russia’s invasion of Ukraine, giving Qatar and the United States significantly larger roles in supplying gas to Europe.

Al-Kaabi said the 40% estimate was based on Qatar’s domestic LNG production and a U.S. joint venture with Exxon Mobil (XOM.N) that will add between 16 and 18 million tonnes per annum (MTPA) when complete.

QatarEnergy is betting that the world will continue to require LNG for the long term, but it must be produced at a price that is affordable and with a reduced impact on the climate, al-Kaabi said.

It is important for QatarEnergy that the price negotiated with customers “is fair and sustainable” for both parties, al-Kaabi said

The latest contract with an Asian customer by the world’s top LNG exporter comes when Western countries, including Germany, push to win a chunk of the Qatari gas as competition ramped up following the Ukraine war.

It is also QatarEnergy’s second to Asia since it started selling the gas expected to come on stream from the North Field expansion project.

“The majority (of LNG exports) will be going to Asia and the other will be going to Europe and we’ll be more than sold out as far as volumes of NFE and NFS,” Kaabi told a news conference in Doha, referring to the two-phase North Field expansion plan.

The expansion will raise Qatar’s liquefaction capacity to 126 million tonnes per year by 2027, from 77 million currently.

Nasrul Hamid, Bangladesh’s Minister of State for Power, Energy and Mineral Resources, attended the signing of the PetroBangla deal in the Qatari capital.

Kaabi said QatarEnergy would sign LNG supply deals, which are close to be finalised, with European customers likely after the summer break, adding that the duration of contracts was not an issue during the negotiations.

But Europe’s climate goals – the EU aims to cut net emissions at least 55% by 2030, and to reach net zero by 2050 – mean its LNG buyers struggle to commit to long-term agreements.

“If a European is actually negotiating with me and has an issue, he will tell me ‘I have an issue with duration,’ I’ve not heard that,” Kaabi said.

Energy-hungry Europe still needs vast amounts to help replace the Russian gas that used to make up almost 40% of the continent’s imports before the Russian invasion of Ukraine.

But Asia, with an appetite for long-term sales and purchase agreements, has been ahead so far in securing gas from Qatar’s massive production expansion project.