New Delhi, Feb 23: India on Friday demanded a reasonable price for crude oil and Liquefied Petroleum Gas (LPG) imports from Saudi Arabia. In a meeting with Saudi Arabia’s Petroleum Minister, Minister of Petroleum Dharmendra Pradhan said that India imports 25 percent of its LPG from Saudi Arabia and prices should be suitable for both countries. India’s demand comes days after Iraq became the largest supplier to India.

“Saudi Arabia is No. 1 crude oil supplier to our market. We import 25% of LPG from Saudi Arabia from Aramco. They’re the most reliable partner for our energy needs. India is a consumer-centric market. We must get reasonable price of crude oil & LPG,” ANI quoted Pradhan as saying.

Pradhan said that India also discussed construction of two new mega projects to increase country’s capacity in storage of petroleum products. “We also discussed about the 2 mega projects – Ratnagiri Refinery & Kakinada Petrochemical Project. We also discussed storage facility. Recently in the presence of PM Modi, an MoU was signed as per which UAE’s oil will be stored in Karnataka” added Pradhan.

After talks with Saudi Arabia’s Energy Minister Khalid A Al-Falih, he said the oil kingpin is also interested in partnering in the second phase of strategic oil reserves India plans to build shortly.

“We have moved beyond mere envisaging of interest and now modalities are being discussed,” he said without elaborating.

Besides Aramco, Abu Dhabi National Oil Co (ADNOC) has also showed interest in the world’s biggest refinery-cum-petrochemical complex that India plans to build in Maharashtra. State-run Indian Oil, Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) are partners in the 60 million tonnes and adjacent petrochem complex.

In Kakinada, state-owned HPCL and GAIL India are looking at building a 1.5 million tonnes capacity petrochemical complex at the cost of Rs 33,000 crore.