India’s leading gas importer Petronet and the US LNG Tellurian will be converting the $ 2.5 billion MoU into an agreement on the sidelines of the bilateral talks between Prime Minister Narendra Modi and the US President Donald Trump on. Highly placed sources have confirmed that the talks between the two leaders will also be on India’s Energy Trade including the signing of the agreement between Petronet and the US-based Tellurian. The CEO of the company is travelling with the US President and on the sidelines of the bilateral talks the two sides will convert the MoU which was inked last year in September into an agreement.
The Driftwood project of Tellurian is a proposed LNG terminal for Bechtel has been identified as the engineering, procurement and construction (EPC) partner for the project. Once the investments start coming from partners then only the construction will start. So far the French Company Total has committed investment of $ 500 in the project for 2 mtpa of LNG. The whole project costs around $ 18 billion.
Once concluded this will be first long term LNG deal under the Modi government since 2014.
India-US Energy Ties
Besides defence, this is another important aspect of the Indo-US trade mix. India is already importing more than $ 4 billion worth of oil and gas from the US. Due to the US sanctions on Iran, India already has plans to increase its imports.
Both sides will talk about the increase in the imports and new technologies that the US can share with the Indian Oil companies.
According to sources, the Indian side is keen on getting concessional freight rates for importing from the US and also get higher credit period of 60-90 days. “This would be on par with the rates India used to get from Iran.”
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