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Taking energy co-operation forward, India and the US are discussing import of LNG from the US. The US currently has a surplus, while India has a deficit, with many of its gas-based power plants languishing.
At a recent meeting between officials of the two countries, the US delegation made a detailed presentation on oil and gas markets, including the impact of LNG and shale gas on the integration of gas markets.
The possibility of export of shale gas in the liquefied form from the US to India was also raised, a senior Government official said.
But, high transportation costs could be a problem, as these work out to around $5.5/million British thermal unit (mBtu).
Adding liquefaction cost of $3/mBtu, the landed cost could be over $7/mBtu, provided Indian taxes are waived.
The US has said that it will consider India's request.
India imports liquefied natural gas (LNG) on long-term and medium/short-term contracts as well as on spot purchase basis.
Currently, 7.5 million tonnes a year of LNG is imported on long-term contract basis by PLL from RasGas, Qatar. PLL has also tied up for import of 1.4 mt from Gorgon, Australia, for its Kochi LNG terminal.
GAIL has signed an agreement for importing 3.5 mt of LNG from the Sabine Pass Terminal in the US.
India's gas companies in the recent years have sourced LNG on a spot basis from Oman, Trinidad & Tobago, Malaysia, Nigeria, Australia, Egypt, the UAE, Russian Federation, Equatorial Guinea, the US, Algeria, Yemen and Norway.
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