Import NewsNo Comments
In a first, India has started importing LNG from the US with the first consignment of gas leaving the US from Louisiana on Tuesday. This will further advance India’s relation with the US as a major buyer of oil and gas.
A twenty-year agreement has been signed between a giant Indian gas utility company and a US-based gas liquefaction facility in December 2011. As per this agreement, the Indian company will receive 3.5 million tonnes of LNG per annum from the LNG exporter based in the US. The cargo has left the US on a ship on Tuesday under this agreement and will reach India around March 28.
India had received its first crude oil consignment from the US in October 2017. India is trying to keep the oil and gas import bills in check from last few months by expanding and modifying its oil basket.
The US had barred oil exports in 1975 which was only removed in 2015 by former US President Barack Obama. The country has emerged as an oil sector powerhouse since then.
As per the International Energy Agency’s latest report, 80% of the global demand growth in energy will be taken care by the US’s increased oil and gas production in the coming three years. The Indian gas utility giant will have a diversified import strategy in practice and will be able to control the prices.