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US gas exports a win-win proposition: Indian envoy
By: Tupaki Desk | 8 May 2013 1:13 PM ISTIndia�s ambassador Nirupama Rao has asked the US to start exporting liquefied natural gas (LNG) to India and other energy scarce countries, calling it a �win-win� opportunity.
�As shale gas has become economically viable to produce, the US has emerged as one of the world�s most important gas producing countries,� she noted in a keynote address at the American Enterprise Institute (AEI) on �America�s Natural Gas: Should Exports be Restricted?�
�Growth in shale gas production in the coming years is now expected to substantially reduce, if not eliminate, the need for the US to import natural gas,� Rao said.
She noted that according to US Department of Energy estimates, the total production of natural gas in the US would exceed domestic consumption by 2020.
�This scenario opens up the possibility of the export of liquefied natural gas (LNG) cargoes from the US to other energy scarce countries, including India� where there is significant untapped potential for natural gas demand in all end use segments, she said.
�The advantage is mutual and that natural gas exports represent a �win-win� co-operation opportunity,� Rao said.
She said that India had already invested significantly in the liquefaction terminals that were likely to come up in the US.
�Our companies are scouting for more tie-ups and ownership stakes in the 19 odd terminals which have applied for export of natural gas to non-Free Trade Agreement (FTA) countries,� she said.
Besides, other Indian companies, including Reliance Industries Ltd in the private sector, have bought stakes in oil and gas exploration and production companies, a trend which will receive a huge boost if export of natural gas is permitted to India, Rao said.
According to a US Energy Information Administration (EIA) study cited by her, roughly 20 percent of the $133.7 billion invested in US tight oil and shale gas from 2008 to 2012 has come from abroad, with Indian companies accounting for a total investment of nearly $4 billion.
�These investments represent more growth, jobs and progress for the US economy and should, in my view, be welcomed,� Rao said.
US natural gas exports will also �bring significant geo-political and strategic advantages to both the US and its partners and allies across the world�, she said.
�As shale gas has become economically viable to produce, the US has emerged as one of the world�s most important gas producing countries,� she noted in a keynote address at the American Enterprise Institute (AEI) on �America�s Natural Gas: Should Exports be Restricted?�
�Growth in shale gas production in the coming years is now expected to substantially reduce, if not eliminate, the need for the US to import natural gas,� Rao said.
She noted that according to US Department of Energy estimates, the total production of natural gas in the US would exceed domestic consumption by 2020.
�This scenario opens up the possibility of the export of liquefied natural gas (LNG) cargoes from the US to other energy scarce countries, including India� where there is significant untapped potential for natural gas demand in all end use segments, she said.
�The advantage is mutual and that natural gas exports represent a �win-win� co-operation opportunity,� Rao said.
She said that India had already invested significantly in the liquefaction terminals that were likely to come up in the US.
�Our companies are scouting for more tie-ups and ownership stakes in the 19 odd terminals which have applied for export of natural gas to non-Free Trade Agreement (FTA) countries,� she said.
Besides, other Indian companies, including Reliance Industries Ltd in the private sector, have bought stakes in oil and gas exploration and production companies, a trend which will receive a huge boost if export of natural gas is permitted to India, Rao said.
According to a US Energy Information Administration (EIA) study cited by her, roughly 20 percent of the $133.7 billion invested in US tight oil and shale gas from 2008 to 2012 has come from abroad, with Indian companies accounting for a total investment of nearly $4 billion.
�These investments represent more growth, jobs and progress for the US economy and should, in my view, be welcomed,� Rao said.
US natural gas exports will also �bring significant geo-political and strategic advantages to both the US and its partners and allies across the world�, she said.