The increase in the price of oil has sparked a debate among the policy makers, industry analysts and observers over the need to look for alternative sources of energy. Rapid industrialization around the world has led to an energy driven and dependent economy. A stage has been reached where one cannot imagine life without oil. In this context replacement of oil is even more difficult. Most experts feel that natural gas could be the next big thing. An abundance of unconventional natural gas has allowed for sustained low natural gas prices.  With prices currently hovering just over $3/ mmBtu, many energy consumers, most notably power generators, manufacturing and petrochemical producers, and potential consumers of natural gas for transportation are turning their attention to natural gas.

Industry experts are saying the United States is in a unique position to benefit from the country’s natural gas boom. With the Port of Houston undergoing a $150 million dredging to allow bigger ships to dock.  The port has been identified as  a potential liquefied natural gas terminal that could bring prosperity to the area, said Congressman Ted Poe, during the Houston Northwest Chamber of Commerce Economic forum. He further remarked that with some of the largest natural gas reserves in the world, the United States has more natural gas than it needs and could soon be one of the largest exporters. While highlighting the significance of LNG exports, Congressman Ted Poe mentioned, “No one would have thought five years ago we’d have enough natural gas to sell. That’s what we’re working on as well as developing LNG terminals across the country to export it”.

Exporting  abundant natural gas to countries like India, the United States can improve the domestic economy while providing their allies and trading partners an affordable and secure energy source. Natural gas demand in India is growing rapidly as a result of an expanding economy, improving wealth and a desire to use cleaner burning fuels. LNG will be an important component of their natural gas supply portfolio. These countries demand more than they can produce and the pricing mechanism for their LNG purchases reflects this. But U.S. law requires export facilities get a “public interest” approval from the Department of Energy if their buyers are located in countries that haven’t signed a Free Trade Agreement with the United States. Non-FTA countries include all European nations as well as China, India and Japan.

USINPAC is taking strategic strides to seek sponsorship of Bills H.R.2771 and H.R.6  that will expedite LNG exports to India and mark a new era in energy trade between the US and India.