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Centre may request US govt to allow Indian firms source gas

Centre may request US govt to allow Indian firms source gas
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Reports suggest that the central government would request the US government to allow India oil and gas companies to source shale gas from the country.

US government does not allow foreign companies to import shale gas. But as an exception, the US government recently allowed state-run Gail to import natural gas from US to India.

Following this, Gail India could import 3.5 million tonne per year of liquefied natural gas (LNG) for two decades from 2017-18, government and industry officials said.

The Indian government wants the US to extend this relaxation to other Indian companies as well. Reliance Industries has invested over $5 billion in shale gas business in the US comprising four separate joint ventures with Chevron, Pioneer Natural Resources and Carrizo Oil & Gas and Pioneer for shale gas or related areas.

In order to address tremendous shortage of natural gas, state-run gas marketer Gail is keen to import gas from US. While Gail is allowed to ship 3.5 million tones of LNG from Sabine Pass Terminal in USA, it is still awaiting the US government’s nod to import gas Carrizo’s Eagle Ford shale gas assets , where it acquired 20 percent equity stake about a year ago.

According to forecasts the US will be the largest exporter of oil and gas by 2017 and India has intensified its oil diplomacy with the country.

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