India-based oil firms Indian Oil and Bharat Petroleum have taken the delivery of first two million barrels of crude oil from the US.
The crude oil has been shipped from ports in Texas and Louisiana, which will reach Paradip in the state of Odisha in India.
The shipments will reach the destination in the last week of September, and will be received by the Indian petroleum and natural gas minister Dharmendra Pradhan.
India oil companies have commenced the process of securing crude oil from the, following the visit of Indian Prime Minister Modi to the US in June.
During the visit, the US president Trump and PM Modi agreed to expand the cooperation in energy sector between the two countries.
The first orders for $1bn of crude are being placed, six weeks after the visit.
Four Indian public and private sector companies such as GAIL, IOCL, Oil India and Reliance have invested around $5bn in Shale assets.
Indian firms have already secured contracts for 9 MMTPA of LNG from the US and the first shipment is expected in January 2018.
India is claimed to be third largest consumer of energy in the world following the US and China. It is also the third importer of crude and fourth largest importer of LNG.
The country currently consuming less than 5% of the world energy, in terms of energy. It is expected to increase and reach about 9% by 2035.
Indian population is expected to consume about 300 million barrels per day per year for next few years, which is around 30% of global incremental growth.
Image: New Prosperity crude carrier will deliver the first shipment of US crude to India's Paradip port. Photo: courtesy of PRNewsFoto / India House.