India’s Petronet LNG Limited signed a Memorandum of Understanding (MoU) with US LNG developer Tellurian Inc Saturday, under which Petronet and its affiliates intend to import up to five million tonnes of liquefied natural gas (LNG) per annum through equity investment in Driftwood project in Louisiana, PTI reported. The MoU was signed in the presence of Prime Minister Narendra Modi, who met CEOs from the energy sector on his first day of a week-long US tour.
In a statement, Tellurian said the deal would fuel India’s impressive economic growth to achieve PM Modi’s goal of a $5 trillion economy. “Petronet, India’s largest LNG importer, will be able 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 statement said. Follow PM Modi in US LIVE Updates
“It is an honour to sign the MoU with Petronet in the presence of Prime Minister Narendra Modi. At Tellurian, we look forward to a long and prosperous partnership with Petronet in the Driftwood project,” Tellurian’s president and CEO Meg Gentle said.
Petronet and Tellurian will endeavour to finalise the transaction agreements by March 31, 2020.
Earlier, the MEA described PM Modi’s meeting with CEOs from the energy sector a “fruitful” one. “Getting straight to business. PM Narendra Modi just concluded a fruitful interaction with top energy sector CEOs at a Roundtable meeting in Houston. Discussion focussed on working together for energy security and expanding mutual investment opportunities between India and US,” MEA Spokesperson Raveesh Kumar said in a tweet.
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, Reuters stated.
PM Modi is scheduled to address 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.