Indian Biggies Bid for U.S. LNG Hubs

Why U.S. LNG?

Seven LNG terminals are already planned in the U.S. to export gas among which the Indian companies want to ship from the east coast terminals just as their Chinese counterparts who focus on the west coast for shipment of gas to ensure energy security.

These discussions become significant because in future the shipments from the U.S. terminals could become more viable than the gas flowing through the Trans-Afghanistan-Pakistan-India (TAPI) pipeline from Turkmenistan and the landing cost of this is calculated as $13 per mmBtu, besides the geopolitical risks.

Currently India is world’s eighth largest importer of LNG. It is estimated that the gas imports would rise five-fold in the coming decade as the domestic gas outputs are failing and the demand for the same is rising. Thus, the companies are having discussions for importing gas in cheaper means.

However, the current domestic gas price at $4.2 per mmBtu, which is subject to revision in 2014, is less costly than the gas shipments from the U.S.