PM Modi is in Houston- the energy capital of the world. With Modi in attendance, Petronet signs MoU with Tellurian for LNG import.
Prime Minister Narendra Modi, met the CEOs from the energy sector on his first day of a week-long US tour.
India’s Petronet LNG Limited signed a Memorandum of Understanding (MoU) with US LNG developer Tellurian Inc under which Petronet and its affiliates intend to import up to five million tonnes of liquefied natural gas (LNG) per year through equity investment in Driftwood project in Louisiana.
Tellurian said the deal would enable Petronet to deliver clean, low-cost and reliable natural gas to India from Driftwood. Increasing natural gas use will enable India to fuel its impressive economic growth to achieve Prime Minister Modi’s goal of a $5 trillion economy while contributing to a cleaner environment.
The first ever meeting in a week long tour if PM has been a successful one. PM Modi got straight into business.
Discussion in the meeting with CEOs focussed on working together for energy security and expanding mutual investment opportunities between India and US.
The Driftwood project includes natural gas production, gathering, processing, and transportation facilities, along with Driftwood LNG, a proposed ~27.6 mtpa liquefaction export facility that will be located near Lake Charles, Louisiana on the U.S. Gulf Coast.
In April, the U.S. Federal Energy Regulatory Commission (FERC) issued the order granting authorization for Driftwood LNG and the 96-mile Driftwood Pipeline, which will inter-connect the LNG terminal to the U.S. natural gas market.
Tellurian Inc which is heading Driftwood project, was founded by Charif Souki and Martin Houston and is led by President and CEO Meg Gentle.
Tellurian intends to create value for shareholders by building a low-cost, global natural gas business, profitably delivering natural gas to customers worldwide. Tellurian is developing a portfolio of natural gas production, LNG trading, and infrastructure that includes an ~27.6 mtpa LNG export facility and an associated pipeline. Tellurian is based in Houston, Texas, and its common stock is listed on the Nasdaq Capital Market under the symbol “TELL.”
Petronet LNG Limited INDIA is the largest importer of LNG in India and one of the fastest growing world-class companies in the Indian energy sector, experiencing 25% revenue growth last year, with a market capitalization of approximately USD 5.1 billion.
Petronet developed the country’s first LNG receiving and regasification terminal at Dahej, Gujarat (17.5 mtpa), and another terminal at Kochi, Kerala (5 mtpa).
Formed as a joint venture in 1998 by the Government of India to import LNG and set up LNG terminals in the country.
It involves India’s leading oil and natural gas industry companies, including GAIL (India) Limited (GAIL), Oil & Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL). Petronet is listed on the BSE and NSE under the symbol “PETRONET.”
The deal is significant as India is looking to expand its pipeline network and building new LNG import terminals to encourage the use of cleaner fuel.
PM Modi has set a target to raise the share of natural gas in India’s overall energy mix to 15 per cent in the next few years from about 6.5 per cent.
PM Modi met with heads of 17 energy companies to speak about the potential for the Indian market and listened to their view on the challenges of supplying and investing in India.
India’s purchases of U.S. oil and gas, has more than doubled in the last year. Reports say, The CEOs have pointed to certain systemic issues with the Indian market during the two-hour-long meet.
Among the issues raised by the businessmen, who included the top leadership of ExxonMobil, BP, Schlumberger, Cheniere, Total and other big energy companies, were problems with arbitration and the dispute resolution mechanism in India.
Some also asked Prime Minister to consider a unified Ministry for all energy issues instead of separate Ministries for Petroleum and Natural Gas, coal and renewable energy in order to streamline processes.
PM Modi will be addressing over 50,000 Indian-Americans at the ‘Howdy Modi’ event on Sunday, in which he will be joined by US President Donald Trump.
The event is expected to be the largest gathering ever for an elected foreign leader visiting the US, other than the Pope.
Dr Sindhu Prashanth