Source: The Economic Times, June 28, 2017
NEW DELHI: US plans to export more natural gas, clean coal and renewable resources and technologies to India to fuel the country’s growing energy demand and strengthen ties between the two countries, according to an Indo-US joint statement.
“President Trump affirmed that the United States continues to remove barriers to energy development and investment in the United States and to US energy exports so that more natural gas, clean coal, and renewable resources and technologies are available to fuel India’s economic growth and inclusive development,” President Donald Trump said in after meeting Prime Minister Narendra Modi.
The shale revolution has placed US in a strong position to export gas to countries like India that are low on fossil fuel resources but have a rapidly rising demand for oil. The two leaders have affirmed the continued importance of their strategic energy partnership and supported financing of energy projects, including clean coal projects, by Multilateral Development Banks to promote universal access to affordable and reliable energy.
They looked forward to conclusion of contractual agreements between Westinghouse Electric Company and the Nuclear Power Corporation of India for six nuclear reactors in India and also related project financing, according to the statement. “The leaders called for a rational approach that balances environment and climate policy, global economic development, and energy security needs,” as per the joint statement.
US plans to export more liquefied natural gas (LNG) to India and is negotiating for a higher price, Trump said in a separate press remark.
“We’re also looking forward to exporting more American energy to India as your economy grows, including major long-term contracts to purchase American natural gas, which are right now being negotiated, and we will sign them. Trying to get the price up a little bit,” Trump said.
India already has long-term gas import deal with US. State-run GAIL has a contract to buy 3.5 million tonnes per annum (mtpa) of LNG for 20 years from Cheniere Energy and has also booked capacity for another 2.3 mtpa at Dominion Energy’s Cove Point liquefaction plant. GAIL expects to receive supplies from early next year.