New Delhi: While the US and China are trading threats, India is smartly trying to manoeuvre out of any trade war with the US by buying oil and gas from the nation. The first shipment of LNG from the US arrived at the Dabhol terminal of state-run gas major GAIL on Friday.
GAIL has signed two, 20-year LNG supply agreements potentially worth $32 billion for US LNG exports from the Dominion Cove Point project in Maryland and the Sabine Pass project in Louisiana.
US president Donald Trump is keen to promote exports from US and cut country’s trade deficit with other nations. As part of the policy, Mr Trump has been attacking China due to huge trade deficit with the communist nation.
He recently outlined fresh tariffs on $50 billion of Chinese imports and pledged there’s more on the way. In response, China unveiled tariffs on $3 billion of US imports.
For India, which is one of world’s largest oil importer, buying oil and gas is easy way to reduce trade deficit with US and prevent a trade war with it. “Our Ambassador to India, Kenneth Juster, has observed that the US is uniquely positioned to offer India a comprehensive energy partnership, and energy exports are emerging as a promising new means of addressing the bilateral trade deficit while promoting India’s energy security,” said US Minister Counselor for Commercial Affairs Patrick Santillo.
Petroleum minister Dharmendra Pradhan India’s trade with USA is expected to increase owing to large scale imports of LNG and crude oil in coming years.
He pointed out that GAIL alone would be procuring $2 billion worth of LNG per annum from USA from FY19.
“The demand for natural gas in India is expected to depict a healthy growth trajectory till 2029-30 as per International Energy Agency (IEA). IEA in it’s World Energy Outlook for 2016 had projected natural gas demand of 178 million standard cubic metre of gas a day (mmscmd) by 2020, 345 mmscmd by 2030 and 510 mmscmd by 2040," said the oil minister.
Indo-US Trade
