India to receive U.S. shale gas imports by 2017

Flag of India
Source: DollarPhotoClub

India is now on track to receive U.S. shale gas imports by 2017 – a local newspaper reported.

Shale gas imports will be from the two blocks recently acquired by India’s state-owned company GAIL (Eagle Ford and Dominion Cove) and once the imports start, they expect to bring in six million tonnes a year, the source quoted by the newspaper said.

Thanks to the currently low natural gas prices in the U.S., it is believed that India’s landed cost of the fuel, despite freight and re-gasification costs, would not exceed $6 per million metric British thermal unit.

India at present imports 76 percent of its crude oil requirements and almost 36 percent of its gas requirements. 7.6 percent of these numbers, according to Indian government figures, come from Africa and the country is looking at broadening that cooperation, seeking deals with countries such as Mozambique – according to the quoted source.

Upon lifting the sanctions imposed in 2006, Iran is also a potential source of imports – of crude in particular – but before that happens, India will have to pay off the $6.5-$7 billion in dues that the country owes Iran.

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