India’s new government is moving ahead with plans to open up its LNG industry to foreign investors.
The country is expected to announce on Monday a plan to allow the sale of gas to the private sector as part of its effort to diversify its energy sources and become more competitive with the rest of the world, the government said on Sunday.
The government will also create a mechanism to sell natural gas from existing domestic LNG facilities to foreign operators and will allow foreign firms to buy liquefied natural gas (LNG) for domestic and export markets.
“The LNG and gas sector will be a part of the government’s strategy to make India more competitive in the global market, and this is in line with our commitment to promote development of natural gas and to increase the supply of LNG in the country,” Energy Minister Piyush Goyal said in a statement.
Goyal said he was not talking about LNG export from existing LNG plants.
“The plan is to sell LNG from existing facilities to the foreign market.
The LNG will be sold at a discounted rate and the government will allow gas exploration and production from existing existing facilities,” he said.
India currently exports almost half of its LNGLs to China, while imports make up about a fifth of its gas needs.
But it is seeking to diversen its supply sources and has been seeking international investment for several years.