US accorded a conditional clearance to export Shale Gas to India

India gets a conditional authorization to import the shale gas from US. The grant came inline after US decided to export domestically produced liquefied natural gas (LNG) to nations that do not have Free Trade Agreement (FTA) with it.

The decision majorly implied towards the aspirations of India, the Department of Energy announced that it has conditionally authorized Freeport LNG Expansion, LP and FLNG Liquefaction, LLC (Freeport) to export domestically produced LNG to non-FTA countries from Freeport Terminal on Quintana Island in Texas.

"Freeport facility in Texas is conditionally authorized to export at a rate of up to 1.4 billion cubic feet of natural gas a day (Bcf/d) for a period of 20 years."

"Granting the requested authorization is unlikely to affect adversely the availability of natural gas supplies to domestic consumers or result in natural gas price increases or increased price volatility such as would negate the net economic benefits to the United States," it said.

Meanwhile India may not benefit immediately from this grant of license as the companies from countries like China, Japan and Britain have already have an overwhelming stake in this Texas company. As India does not has a FTA with the US the decision gave a hope for India, to get its companies get similar licenses for import of much needed gas from the United States in large quantities from other terminals.

As per the federal law it requires approval for natural gas exports to countries that have an FTA with US. where as, for countries that do not have an FTA with the United States, the Natural Gas Act directs the Department of Energy to grant export authorizations unless it finds that the proposed exports "will not be consistent with the public interest."