With increasing influence of the US in the global energy space, India has also set out to woo America not only as an investment destination but also as a supplier of natural gas.

Prime Minister Narendra Modi during his visit to the US starting September 26 is expected to sign a memorandum of understanding for cooperation in gas hydrates.

“The United States is a key strategic partner particularly in areas of nuclear and renewable energy. The visit would help the two countries fast-track this co-operation into the next stage,” said Narendra Taneja, Energy Expert.

“Nuclear energy is a priority as far as India is concerned. We expect American companies to benefit from the visit and switch to the action mode with regard to their investment in India,” he added.

India is yet to operationalise its civil nuclear deal with the US as administrative agreements have not yet been signed, despite the civil nuclear agreement being signed more than six years ago.

The two sides have not been able to move forward as India has so far been unwilling to change its Civil Liability for Nuclear Act, 2010. The major differences between India’s liability law and international liability regime are that India allows the plant operator legal recourse against the supplier in case of damage.

For India, public sector undertaking Nuclear Power Corporation of India will be the operator while private companies from the US would be the suppliers. NPCIL did not want to comment on the story.

India is also keen to source gas from the US. “Deepwater exploration, LNG trade and unconventional hydrocarbons such as shale are also on the agenda,” said Taneja.

According to Commerce Ministry sources, during the strategic dialogue with Energy Secretary Ernest Moniz, the response was positive to review the pending application for LNG export to India.

At present, US gas is available to only those countries with which it has a free trade agreement (FTA) and India does not have a FTA with the US. Though the two projects in the US, where GAIL (India) has stake, have been given special permission for future sourcing, India wants complete waiver from existing conditions.

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