USA (United States of America) cleared Shale Gas Export to India

May 19, 2013 13:21 IST

USA on 18 May 2013 granted conditional authorization to export domestically produced liquefied natural gas (LNG) to countries that do not have Free Trade Agreement (FTA) with it. It opens up the prospects of export of shale gas to India. The decision was announced by Department of Energy in USA. The gas will be exported from Freeport Terminal on Quintana Island in Texas.

The companies from nations like Japan, China and Britain have huge stake in the Texas company, Indian chances to benefit immediately from this grant of license are rare. India does not have a free trade agreement with the USA. But Indian companies can seek similar licences for import of the shale gas from the U.S. in large quantities from other terminals.

The present federal law generally requires approval of natural gas exports to nations that have an FTA with the U.S. But those nations that do not have an FTA with the U.S., the Natural Gas Act directs the Department of Energy to grant export authorisations provided that the proposed exports will not harm the public interest.

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Read more Current Affairs on: USA , Shale gas , FTA

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