According to Wadhwa, “This is because India wants to reduce its carbon emissions by 33-35% from 2005 levels by 2030. This will further deepen US-India energy and trade relationship.
For its energy security India has started the exercise to build a gas economy that is environment friendly too. India has been exploring different markets including in Africa, Latin America, the US and Russia as it is trying to ensure it has alternative choices outside the Middle East.
Sources have confirmed that India’s largest LNG importer Petronet LNG Ltd (PLL) is likely to invest around $ 2.5 billion and to pick up 20 percent stakes in the US based natural gas company Tellurian’s Driftwood project.
According to a MoU which was inked in the presence of Prime Minister Narendra Modi, it is mentioned that PLL will make investment in the equity of Driftwood project located in Louisiana to secure the LNG and that PLL and its affiliates will be importing for up to 5 Million tonnes of LNG from the US over a 40 year period. The whole project includes natural gas production, transportation facilities, processing and a proposed 27.6 mtpa liquefaction export facility.
The LNG deal between the two sides is subject to further and both Tellurian and Petronet are expected to close the final the transaction agreements by end of March 2020.
India’s Petronet LNG is the largest importer of LNG in the country and has developed the first LNG receiving and re-gasification terminal at Dahej, Gujarat and another terminal at Kochi, Kerala.
On Saturday at Hotel Post Oak, Houston, CEOs of 17 global energy companies participated in the round table, whose combined net worth is $1 trillion and these companies have a presence in 150 countries
According to the official spokesperson of MEA, Raveesh Kumar, “Objective of the meeting was to deepen our energy cooperation as part of our strategic energy partnership. And the companies present at the round table have some engagement or presence within India.”
The CEOs talked about expanding their footprint in India and also lauded government efforts towards Ease of Doing Business, and the steps taken towards deregulation in the sector.
On Sunday, Modi along with the US President Donald Trump is going to address US law makers, Indian community of 50,000 and businesses at the “Howdy, Modi” event. The event will take place at the sprawling NRG football stadium and will be largest gather ever for an elected leader of another country visiting the US.
Sharing his view, Ambassador Anil Wadhwa says, “The MoU signed between Indian company Pertronet LNG and the US developer Tellurian Inc for investment in its upstream arm Driftwood energy which is developing a project in Louisiana is significant . Indian company will invest $ 2.5 million for rights of up to 5 million tonnes a year of LNG over the lifespan of the project .
“India is expanding its pipeline network and building new energy terminals to encourage use of cleaner fuel – raising the share of natural gas in its energy mix from 6% to 15% in the next few years . India is pushing to connect 10 million households to piped natural gas by 2020 and is generally pushing for a gas based economy for its fertilizer, steel and power industries,” he says.
According to Wadhwa, “This is because India wants to reduce its carbon emissions by 33-35% from 2005 levels by 2030. This will further deepen US-India energy and trade relationship. It will also tie India and the US into a symbiotic relationship which will no doubt be further expanded in the oil and gas fields through other projects as energy starved India pushes ahead with its development plans. The fact that this creates a synergy between India and the US is not lost on anyone.”
No doubt there will be a fall out effect on further strengthening of political ties between the two largest democracies of the world. PM Modi will also address 50000 odd Indian Diaspora but what is most significant is the presence of President Trump and other is political figures with him at this event. The significance should not be lost on anyone.
First – it is a unique event in the history of the two countries and second it signifies the confidence and trust that the leadership of the two countries have in each other, he points out. “PM Modi s message to the Indian Diaspora will no doubt be one that will convey his appreciation for the bond that they have formed between the two countries and his appeal to them to continue to work for the betterment of this relationship .”