India to Persuade US to Export LNG

New Delhi would be looking to persuade US to sell LNG to India by exempting it from the requirement of a compulsory Free Trade Agreement (FTA) when Prime Minister Narendra Modi visits Washington DC in September, says Business Line newspaper.

“The issue is very much on the Prime Minister’s agenda, and we have indications that the US is seriously considering the matter,” a government official told Business Line.

Currently US exports gas to those countries with which it has a Free Trade Agreement (FTA) with.

Though two projects in the US, where Gail India has stake, have been given special permission for future sourcing, New Delhi would prefer complete waiver from the existing conditions, adds the newspaper.

India’s confidence on getting the waiver emerges from a Bill recently introduced in the US Congress for speedy approval of export of natural gas to World Trade Organisation countries.

According to Business Line the Indian-American business community in the US believes that a deal on LNG is a low-hanging fruit.

“The two sides need to make a big announcement during Modi’s visit to lift the bilateral relationship that has gone a little downward (in the recent past). Since the Bill that could give India a waiver and allow US to sell it LNG is already there in the Congress, we are optimistic that something on this could be announced in September,” Sanjay Puri, Chairman, US India Political Action Committee, told Business Line during a recent visit to New Delhi.