U .S. India LNG Relationship – A start to the exponential future?

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Faced with a growing need for energy, Prime Minister Modi has announced energy security for India one of the countries top priorities. United States on the other hand, has never experienced resurgence in energy like this and is looking to capitalize on the growing exports for liquefied natural gas. Is this a sign of an international relationship that is to surge?

Already in the top five as world’s biggest energy consumers, India is poised to grow in their demand for energy consumption and is expected to surpass China in the source of growth in energy demand by 2020’s. It is also Modi and his Bharatiya Janata Party’s promise to have every Indian citizen access to water and power in their homes by 2022-23(Hiscock, G.). India now has to find a way along with United States, China, and Russia to diversify their energy resource and to sustain a growing economy.

United States on the other hand is booming off a natural gas industry that has recently seen a $120 billion investment in North American export projects. Analysts are now projecting a 30% export of U.S. gas by 2020, 56% growth in production by 2040, and over 31 facilities have applied for a federal approval to build export facilities (Koch, Wendy). The pressing issue now seems to be finding a long-term partner that will guarantee a successful growth for both countries in what could be a momentum changing relationship.

Is this a relationship meant to be? A country with an abundant resource of natural gas to sell and another that has growing needs to import more energy to support their economy. Right now the main problem before this win-win situation can come to its fruits is the process of getting an approval from the Department of Energy. DOE holds its approval based on its laws from the 30’s, which require the department to decide if the export is in “public interest”. This process has received critical backlash based on their extensive delays. Currently Bill H.R. 2771 and Bill H.R. 6 aims to cut out the delay and expedite the international trade that will continue to boom international economy and its countries (LNG Initiative).

Only time will tell when this promising relationship go on fully underway. But for U.S. and India, this new energy relationship will now help determine where each stands 10-20 years from now as a world powerhouse.

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