Rising US LNG supply will make natural gas affordable in India: FERC

NEW DELHI: Rising US LNG supply and the efficiency of its producers and transporters will make natural gas affordable for India, the chief of US energy regulator has said.“Law of supply and demand, more US gas contributing to the global supply, I am optimistic will bring down the cost of gas globally. The efficiency of the US industry when it comes to production, transportation, I am hopeful that the cost of gas will come down to where it will be affordable for India,” said Neil Chatterjee, chairman of the Federal Energy Regulatory Commission, who is on a visit to India, meeting his counterparts and other energy officials.The shale revolution of the past decade has resulted in massive cheap supplies of natural gas in the US, reshaped the global industry and made the US world’s top producer and a key exporter of the fuel.India has some contracts for US LNG but high transportation costs make it expensive for Indian customers. India currently imports about half of the gas it uses. The imports are expected to rise as the government aims to expand the share of natural gas in primary energy mix to 15% by 2030 from the current 6%.The US is increasing its foothold in the LNG export space, and a recent fall in the LNG rates to record lows has not dented investor interest in setting up new LNG export facilities in the US, Chatterjee said. “All the signals I see from domestic participants as well as our international allies, people continue to be bullish about the prospects for US LNG,” he said.A wider adoption of natural gas in the electricity sector is becoming a big support for increased deployment of renewables in the US, Chatterjee said.

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