India and the US looked to deepen energy cooperation on the first day of PM Narendra Modi’s visit with the government announcing that India’s Petronet will invest $2.5 billion in Houston-based Tellurian’s proposed Driftwood LNG export terminal, in exchange for rights to 5 million metric tonnes of LNG per year over 40 years.
The deal will increase India’s energy imports from the US and help reduce trade deficit, which US President Donald Trump has often complained about in the past.
Modi’s first engagement in Houston was a CEO round-table with oil majors. MEA spokesperson Raveesh Kumar said CEOs of 17 global energy companies participated in the round-table. The combined net worth of these companies, he said, was $1 trillion and they together had presence in 150 countries. “...Objective of the meeting was to deepen our energy cooperation as part of our strategic energy partnership,’’ said Kumar.
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“CEOs talked about enhancing their footprint in India. They lauded the government’s efforts towards ease of doing business, ...deregulation in the sector, supported reforms and policies and were upbeat on the Indian economy.’’he added
“It is an honour to sign the MoU with Petronet in the presence of PM 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 will spend $2.5 billion for an 18% equity stake in the Driftwood LNG terminal — the largest outside holding so far in the project — and negotiate the purchase of 5 million tonnes of gas per annum, Gentle said.
Source: timesofindia.indiatimes.com