First U.S. LNG cargos head to India, a game changer for global energy security

March 5, 2018


First U.S. LNG cargos head to India, a game changer for global energy security, USEA chief says

Houston— Today, USEA-member Cheniere Energy Inc. will send its first shipment of U.S. liquefied natural gas (LNG) to India through its Sabine Pass LNG terminal in Louisiana.

Houston-based Cheniere signed a 20-year deal with GAIL India Ltd., to supply the subcontinent’s largest natural gas transmission and marketing company 3.5 million metric tons of LNG/annually in a deal that would generate more than a billion dollars for the U.S. company, which began exporting in 2016.

In a statement, U.S. Energy Association Executive Director Barry Worthington said:

“Today’s shipment is significant because it means security for the world’s third largest energy consumer. Other countries are trying to secure their own resources in the face of rising energy demand marked by a projected 30 percent increase in global energy consumption by 2040.

“The deal between Cheniere and GAIL aligns with the Strategic Energy Partnership announced by U.S. President Donald Trump during Indian Prime Minister Narendra Modi’s visit to Washington last summer; the two leaders agreed to leverage new opportunities and elevate cooperation.

“The U.S. is the world’s largest natural gas producer, a leading supplier of LNG, and is expected to become the largest producer of crude oil this year.

“Concurrently, India is trying to increase its use of natural gas. The fuel comprises about 6 percent of India’s energy mix, while its government is taking steps to move the needle closer to 15 percent within five years. As India tries to secure energy supplies and reduce emissions by using more natural gas, the U.S. is a logical energy partner.

“President Trump is driving an American energy production agenda that removes barriers to all energy production, development, delivery, technological innovation and exports. Creating that energy security in the U.S. will allow us to help our allies--like India--secure their own future and economic growth.

“One-third of the growth of world energy consumption is driven by India, so we anticipate more opportunities for cooperation between U.S. industry and India on clean coal, renewable resources, energy storage, fossil fuel, and smart grid technologies.

“USEA has worked with the U.S. Agency for International Development in India for more than 25 years promoting energy security through increased trade, investment and access to clean sources of power and fuel.

“We look forward to continuing that partnership and being a resource for further development in the country.”


If you would like to speak with Barry Worthington about this story or other energy issues, please contact Dipka Bhambhani at [email protected] or 202-321-3337.

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