India makes headway with United States on LNG import

India appears to have made some headway with the United States on import of liquefied natural gas (LNG) from the latter during the just concluded visit of US President Barack Obama.

According to informed sources, the US’ cooperation on clean and green energy has been discussed between Prime Minister Narendra Modi and Obama. “There is some headway which is considerable,” a source told Deccan Herald. Although there is no word from the Indian government, the US President has dropped enough hints regarding his country helping India on switching to cleaner energy sources from fossil fuel.

Soon before leaving India on Tuesday after a three-day visit, Obama said that unless countries like India embrace cleaner fuel, the world does not stand a chance against climate change. He also pledged his help to India in dealing with the impact of climate change.

Addressing the meeting of Indian and American CEOs on Monday, President Obama had also announced investment of $2 billion in India’s renewable energy initiatives in the next two years. “The bulk of poor Indians who consume little or no fossil fuel could possibly leapfrog to green sources of energy such as solar, LNG via US shale and nuclear. The US could agree to transfer of funds and technology to make these energy sources cheaper for the bottom 600 million Indians who have very little access to fossil fuel today,” Obama said.

According to the source, the terms and conditions and the modalities of green fuel import might be discussed in due course. India wants preferential access to US exports of LNG. But the US currently exports LNG to only those countries with which it has signed a Free Trade Agreement (FTA). India does not have an FTA with the US.