India receives first LNG consignment from United States
India has received first liquefied natural gas (LNG) cargo comprising 1.2 Lakh tones of the Gas from United States. The cargo has landed at the Dabhol regasification terminal in Maharashtra.
About the India-US LNG Contract
The recent consignment of LNG has been imported from US under a long-term contract of 20 years. This USD 32 Billion contract was signed between India’s GAIL and America’s Dominion Energy Cove Point project in Maryland and Cheniere Energy Inc’s Sabine Pass Project in Louisiana.
India America Trade Relations
With a bilateral trade of around USD 126.1 billion in 2017, currently, United States is among the largest trade partners of India. The trade between two countries has increased at a compound annual growth rate of 11.4% from USD 20 Billion in 2000.
India has been so far importing LNG from Middle East, particularly Qatar. In recent times, USA has increased production of petroleum products and has become one of the largest exporters of petroleum products. The import of LNG contracts is based on premise of diversifying India’s sources for clean energy. The government is promoting a shift towards gas-based economy but the current domestic production and infrastructure don’t suffice.