Economy

Gas imports: India wants US to consider free trade pact

Our Bureau New Delhi | Updated on March 12, 2018

To enable import of gas from the US, India has asked the US Government to consider a free trade agreement (FTA).

Currently, US gas is available to only those countries that have a FTA with that country. India does not have an agreement with the US.

A senior Government official said, “We have been emphasising this to the US. We expect the US administration to take a decision.”

Recently, the US Ambassador to India Nancy J. Powell had told reporters that a study was being undertaken by the US Government on how much shale gas the country had, how much the gas demand was, and the benefit and costs involved if exports were allowed.

“By the end of the year, a clearer picture should emerge,” she had said. Indian companies will have to wait for the report before any deliberations on trade begins, Powell added.

At present, only one project where an Indian company (GAIL) is involved has been allowed to export gas. There are other two projects that are pending approvals, and their fate is dependent on the outcome of the study.

India has been basically focusing on shale gas and shale oil from the US. Once the US gas is available in the market, it is expected to create a certain degree of moderation in international gas price.

Meanwhile, Indian companies are also looking at hydrocarbons opportunities as well as sourcing of hydrocarbons from Canada and Azerbaijan.

Published on November 29, 2012

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