Cheniere Energy sends first U.S. liquid natural gas exports to India

Cheniere Energy Inc. sent on Monday its first shipment of U.S. liquefied natural gas (LNG) to India through the Sabine Pass LNG terminal in Louisiana.

Cheniere, which is based in Houston, signed a 20-year deal with GAIL India Ltd., to supply the company 3.5 million metric tons of LNG/annually. The deal will generate more than 1 billion dollars for Cheniere, which is a member of the United States Energy Association (USEA).

“Today’s shipment is significant because it means security for the world’s third-largest energy consumer,” USEA Executive Director Barry Worthington said. “Other countries are trying to secure their own resources in the face of rising energy demand marked by a projected 30 percent increase in global energy consumption by 2040.”

The United States is currently the world’s largest natural gas producer and is projected to become the largest producer of crude oil this year. India is looking to increase its use of natural gas, which makes up approximately six percent of the country’s energy mix, to 15 percent within five years. India drives one-third of the world’s energy consumption.

“USEA has worked with the U.S. Agency for International Development in India for more than 25 years promoting energy security through increased trade, investment and access to clean sources of power and fuel,” Worthington said. “We look forward to continuing that partnership and being a resource for further development in the country.”