India's GAIL Wants US to Relax Gas Export Rules

India’s GAIL wants US to relax its gas export rules so that the company could buy more liquid natural gas (LNG) to meet India's growing energy needs.

"If US becomes a major exporter (of gas), the market is in countries that have not signed free-trade agreements (FTAs) with the US such as India," GAIL Chairman and Managing Director BC Tripathi was quoted as saying by Business Standard.

Gas-surplus US at present allows exports of small amounts of natural gas. It has so far allowed only Cheniere Energy to export liquefied natural gas (LNG) from Sabine Pass LNG terminal to countries that have not signed FTAs with the US such as India.

GAIL recently signed an agreement to import 3.5 million tonnes of LNG from Sabine Pass, a subsidiary of Cheniere Energy.

Business Standard said that the Indian energy major wants to tap all of the seven LNG export terminals planned in the US. The seven planned LNG terminals have approvals to sell gas only to nations that have signed FTAs with the US.

Meanwhile, the company announced that it will most likely commission its LNG terminal in Dabhol in October or November. The terminal will operate initially at about 2.5 million tonnes a year, half of its installed capacity.