With the first shipment of LNG being flagged off from Louisiana, India on Tuesday began natural gas import from the US, PTI reported. India has signed a 20-year deal with the US for LNG import. Already, India imports crude oil from the US. The first chartered LNG ship ‘Meridian Spirit’ has been loaded with the cargo from Cheniere Energy’s LNG export facility at Sabine Pass LNG project, PTI reported citing a GAIL statement. The company is the leading exporter of the US LNG and India is one of the foundation customers of the company. Cheniere has entered in a contract with GAIL to deliver it nearly 3.5 million tonnes of LNG annually, under the terms of the agreement.
Here are the key things to know:
1)GAIL signed a sale and purchase agreement (SPA) with Cheniere Energy in December 2011.
2) GAIL signed a contract of 3.5 million tonnes per annum of LNG from Cheniere Energy’s Sabine Pass liquefaction facility.
3)The LNG cargo will be discharged around 28th of this month at Dabhol terminal of GAIL (in Maharashtra).
India also imports crude oil from the US currently. However, the import only began in 2015 when the US President Barack Obama lifted a ban that was in effect since 1975. In October last year, India began importing its first crude oil shipment from the US.
India’s expanding oil demand
India may leave behind Chin, as India’s oil demand will expand 120 percent by 2035, BP Energy Outlook said. At present, India imports 80 percent of its oil needs. By 2035, India will be among the largest oil or oil-related products’ markets. BP Energy Outlook also said that India’s oil imports will also rise by 165 percent. It accounts for an increase of 56 percent in total energy imports. India’s oil import in January was higher by 13.6 percent than December last year. A sper analysts, this development has attracted the interest of Organization of the Petroleum Exporting Countries (OPEC). While OPEC and non-OPEC members are working out on cuts in the oil production so as to push prices, Iraq is focussing on India as a big market.