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India officials considering American natural gas exports

India officials considering American natural gas exports

Several Indian leaders are evaluating the benefits of U.S. natural gas exports. According to The Economic Times, India invested roughly $4 billion in the American oil and shale gas sectors between 2008 and 2012, and a few Indian administrators are examining U.S. natural gas exports' potential impact on the nation's economy. 

Nirupama Rao, Indian ambassador to the U.S., is one of several Indian leaders who is advocating for U.S. natural gas exports to go to India in the near future. Rao said that a partnership between India and the U.S. could significantly benefit Indian residents and those who hold jobs in the U.S. and send money back to their families in India. 

"As shale gas has become economically viable to produce, the U.S. has emerged as one of the world's most important gas-producing countries," Rao told the news source. 

U.S. Energy Information Administration and Department of Energy estimates show that U.S. natural gas production may exceed domestic consumption by 2020. Rao points out that India's use of U.S. natural gas exports could help her country's residents reduce their electricity expenses and deliver a substantial boost to the local economy. 

"This scenario opens up the possibility of the export of liquefied natural gas cargoes from the U.S. to other energy scarce countries, including India, where there is significant untapped potential for natural gas demand in all end use segments," Rao told the news source. 

A "win-win" opportunity for India and the U.S.
Shale gas production growth over the next few years could benefit India and the U.S. In fact, Rao notes that U.S. natural gas exports to India may provide a "win-win" opportunity for both countries. 

Job creation is a major initiative for Indian officials, and Rao states that a new partnership between India and the U.S. would represent a significant achievement. The Hindustan Times reports that India has already made significant investments in liquefaction terminals, which could help the Indian economy improve. 

Petronet, India's largest natural gas importer, recently signed an agreement that could affect Indian and U.S. citizens. UPI notes that Houston's United LNG agreed to supply 4 million tons of liquefied natural gas to Petronet annually for the next 20 years

Indian leaders said that the nation's demand for liquefied natural gas is growing at an annual rate of 5.6 percent. The recent partnership between Petronet and United LNG could help India keep pace with its liquefied natural gas needs, and Indian officials will continue to explore their options as well. 

Read more from India, Other
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