The United States has been obtaining stockpiles of natural gas since the development of shale gas began.
India, meanwhile, has been watching its supply of natural gas slowly disappear. The Asian nation has since been trying to find overseas suppliers from which to purchase the valuable resource.
But now GAIL India Ltd., India’s energy company, has made a 20-year deal with Cheniere Energy (NYSEAMEX: LNG) to receive natural gas.
In the deal, Reuters reports, Cheniere has agreed to supply 3.5 million tons of liquefied natural gas (LNG) to GAIL annually from its Louisiana plant at Sabine pass.
The deal is to take effect in 2017.
The company has become the first U.S. company to export natural gas, CBS reports.
Other U.S. companies are interested in finding export deals as well as natural gas continues to appear in abundance.
India currently gets the majority of its energy from coal, but as it continues to develop the demand for energy is growing.
It has entered into deals with Qatar, Russia, and Australia for natural gas, as Reuters reports.
CEO of Cheniere Charif Souki expressed his satisfaction with the deal and his desire to continue making similar deals, as he told Reuters:
“We continue to hold advanced discussions with additional global LNG buyers and expect to complete commercial discussions for the remaining capacity of the second phase of the project…in the coming weeks.”
Cheniere is a company to keep an eye on, especially with LNG sales abroad.
Cheniere fell 10.97% on Wednesday to $8.31.
That’s all for now,