Modi meets energy sector CEOs in US
Indian LNG importer signs MoU with US-based Tellurian on the sidelines
HOUSTON:Prime Minister Narendra Modi kicked off his US visit with a “Howdy Houston?” tweet and a roundtable with CEOs of 17 energy companies with a net worth of $1 trillion and operations in more than 150 countries, including India. “It is impossible to come to Houston and not talk energy!” Modi tweeted.
HOUSTON:Prime Minister Narendra Modi kicked off his fourth visit to the US with a “Howdy Houston?” tweet and a roundtable with CEOs of 17 energy companies with a net worth of $1 trillion and operations in more than 150 countries, including India.
On the sidelines of the meet at Hotel Post Oak, India’s largest LNG importer Petronet signed an MoU with Houston-based Tellurian to invest $2.5 billion for 18% equity in the US energy major’s Driftwood project and negotiate the purchase of five million tonnes of gas per annum over 40 years.
Modi hit the ground running on Saturday. “It is impossible to come to Houston and not talk energy!” he tweeted about the roundtable, his first official event after landing here. “Had a wonderful interaction with leading energy sector CEOs. We discussed methods to harness opportunities in the energy sector,” he added.
Energy ties have been growing between the US and India, which is looking to diversify energy sources after sanctions led to the drying up of supplies from Iran. The US is now the world’s largest producer of energy and India is a growing client with annual buys in the range of $4 billion. India is also the sixth-largest buyer of US LNG.
Petronet’s deal could be one of the largest foreign investments in the US to ship shale gas abroad.
“Petronet will invest $2.5 billion in Tellurian’s proposed Driftwood LNG export terminal (in Louisiana) in exchange for the rights to five million metric tonnes of LNG per year over 40 years,” external affairs ministry spokesperson Raveesh Kumar said.
“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,” Tellurian said in a statement.
The Driftwood project is expected to lead to investment of $29 billion in energy infrastructure in the US and create 50,000 direct and indirect jobs, and India’s investment will dovetail with US President Donald Trump’s plans to create more employment at home, people familiar with developments said.
Kumar said the objective of the roundtable was to deepen energy cooperation as part of a strategic energy partnership. “The CEOs talked about enhancing their footprint in India. They lauded government efforts towards ease of doing business and steps taken towards deregulation in the sector, supported reforms and policies and were upbeat on the Indian economy,” he said.