Cooperation in the shale gas exploration, collaboration on strategic petroleum reserves, export of LNG to India and partnership in the field of renewable energy would form the focus on the Indo-U.S.
Energy Dialogue likely to take place during the visit of U.S. Energy Secretary Ernest Moniz to India from March 10.
The two-day visit, earlier supposed to take place in January, was postponed due to diplomatic spat between the two countries and the visit was rescheduled for next month.
The visit comes in the backdrop of an energy starved India looking for gas imports from U.S. The meeting between the Indian officials and U.S. government would focus on mainly issues of oil and gas investment and safety, unconventional gas cooperation, energy policy, security of supply and strategic oil reserves and South Asia regional Energy Integration. “The gas scenario by 2020, issue of export of LNG from U.S. to India, the future of energy matrix and global gas scenario and its implication in the TAPI project will come up for discussion,” a senior Petroleum Ministry official said on Wednesday.
India would take up with U.S. the issue of enhanced shale gas and LNG exports to India. The Oil and Natural Gas Corporation (ONGC)-led consortium is likely to seek U.S. assistance and expertise in shale gas
exploration and best practices for technical mapping processes. The U.S. side is also keen on forging an collaboration between Indian universities and U.S. Petroleum Engineering Departments, including Tax A&M University at College Station, Huston and its Qatar (Doha) campus.
The U.S. side has expressed its desire to offer India assistance in development of salt caverns which often house hydrocarbon reserves and coordinate with the Ministry of Petroleum and Natural Gas in coordinating efforts with International Energy Agency (IEA) to assist in decision making regarding the different business models available for operation in such reserves.
State-owned GAIL India Ltd. has entered into a $15 billion deal for a 20-year gas import deal to buy LNG from Houston-based Cheniere Energy.
India wants U.S. to relax its restrictive policy for other Indian companies. At present, U.S. does not allow gas exports to any country with which it doesn't have a Free Trade Agreement (FTA) but made an exception for GAIL India Ltd. Cheniere Energy will supply GAIL with 3.5 million tonnes per year of LNG from Cheniere's Sabine Pass LNG terminal in Louisiana. At current prices, it's a favourable deal for India and LNG deliveries are expected to start in 2017.
On the nuclear energy front, U.S. is likely to take up with India the fact that even after seven years of signing the Indo-U.S. nuclear deal, not a single U.S. nuclear company has been able to make significant headway into India.
