Steel sector will push up demand
India will get delivery of the first ever shipment of LNG from the U.S. on March 30, Petroleum and Natural Gas Minister Dharmendra Pradhan said on Wednesday. This comes about six months after India received the first ever shipment of crude oil from the U.S. in October.
The gas contract is between GAIL — for 3.5 million tonnes per annum of natural gas — and Cheniere Energy’s Sabine Pass liquefaction facility in Louisiana. It will arrive at GAIL’s Dabhol terminal in Maharashtra. “We have signed a contract for 20 years and it is very economically profitable for India,” Mr. Pradhan said.
Mr. Pradhan also added that the demand for natural gas in India, which was already growing rapidly, would see further growth from the steel sector.
“India is the most prolific economy in the world, and it will continue to grow,” Mr. Abbott said. “And this growth needs energy. Texas is blessed with oil and gas resources, so there are many avenues for cooperation.”
“One smart thing India has done is to sign a long term contract of 20 years, which will provide price stability,” Mr Abbott added, responding to a query on the price levels of natural gas moving forward.
“In the emerging energy scenario, new investments are in LNG,” Mr Pradhan said. “Prices are moving in a reasonable direction.”