India a "Huge Opportunity": Perry

India offers a huge opportunity to US pipeline companies thanks to its determination to use more gas, US energy secretary Rick Perry told House Energy and Commerce Committee April 12, a day before he leaves for a trip to India to discuss energy partnership. Indian Gail received its first LNG cargo from the US March 30.

“Two weeks ago, the first molecules of [US] natural gas arrived in India. I think the issue for them is to build the infrastructure to move that gas around. If you want to satisfy the economic needs and national security needs of your people you need have the distribution system in place. US pipeline companies have a great opportunity in India which is a huge market,” Perry said.

Late last month, India’s Gail received the maiden LNG shipment from US that had left from Cheniere Energy's LNG export facility at Sabine Pass LNG project, Louisiana March 5. The cargo arrived at Gail’s Dabhol terminal on Meridian Spirit vessel. The US company will supply about 3.5mn mt/yr of LNG for 20 years to India’s biggest gas marketing firm under a deal signed December 2011. Gail also has an agreement with Dominion to import 2.3mn mt/yr of LNG.

Pete Olson, vice chairman of the committee's energy panel, who was in India last week as part of a congressional delegation said, “Prime minister Narendra Modi has an aggressive plan to clean up the country's dirty air, which calls for a lot of wind and solar. But India also wants to use natural gas as a cleaner alternative to other fossil fuels such as coal.”

The government is pushing for greater use of natural gas to combat air pollution in cities. The government is also working on expanding the natural gas pipeline grid, especially in the under-served eastern region of the country, which is densely populated.