Indian Biggies Bid for U.S. LNG Hubs

Indian Oil and Gas Companies are Already in Talks

"RIL plans to invest another $1-1.5 billion over five years. Shale gas is expected to constitute $1-1.25 billion of EBITDA once the total investment is completed," said an RIL spokesperson in this context. RIL has made $3.8 billion investments in the United States shale exploration and production assets, and is presently exploring opportunities to buy stakes in LNG terminals on the east coast. 

In 2011, GAIL India brought a 20 percent stake in one of Carrizo Oil and Gas’ shale gas assets for $300 million. The company has been in talks with Macquarie Energy, which has a share in the U.S.-based Freeport LNG project. GAIL’s Marketing Director Prabhat Singh said, "India needs gas, so equity participation in LNG projects is also required."

Meanwhile, ONGC chairman Sudhir Vasudeva has confirmed that the state-owned company was pursuing a stake buy in LNG terminals in the U.S. In Aug 2012, ONGC and Japan's Mitsui has agreed to work together in the gas and LNG businesses. "We have signed an MoU to pursue opportunities in the entire value chain of sourcing LNG to setting up a re-gasification terminal," he said, adding that under the agreement both partnering companies would make efforts to source LNG from international suppliers on spot, in both short and long-term contract basis. 

The seven planned LNG terminals would be allowed to export to nations that have signed free-trade agreements (FTAs) with the United States.

So far India is not in the list and thus GAIL India Chairman B C Tripati has gone for diplomatic intervention to persuade Washington to allow these terminals to sell gas to India. Considering the need, Maharashtra Union Minister for petroleum R P N Singh said in Parliament that the external affairs ministry has been asked to intervene for allowing gas import from the U.S.