Energy Cooperation Current Affairs - 2019
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India for first time has started process of importing Liquid Natural Gas (LNG) from United States. The development comes on the heels of India’s first import of crude oil from the US in October 2017.
State-owned GAIL will discharge its
The first US-sourced LNG shipment was imported by state-owned GAIL and was shipped it on board of its chartered LNG ship ‘Meridian Spirit’ from Cheniere Energy’s Sabine Pass LNG export facility in Louisiana. It will be discharged at GAIL’s Dabhol terminal, Maharashtra.
GAIL had signed 20-year Sale Purchase Agreement (SPA) with US’ natural gas exporter Cheniere Energy in December 2011. Under it, GAIL will purchase around 3.5 Million Tonne of LNG per year from Sabine Pass. Cheniere Energy is currently operating and constructing its Sabine Pass LNG facility in Louisiana and is constructing second liquefaction facility near Corpus Christi, Texas.
This shipment will help GAIL to diversify its portfolio both on price indexation and geographical locations. Moreover, this long-term SPA will also strengthening relationship between GAIL and Cheniere and reinforcing India-US trade ties.
India primarily imports LNG from Qatar and Australia under long-term contracts. In recent times, it has been trying to diversify its natural gas sources. Moreover, after former US President Barack Obama lifted US’s 40 year-old oil export ban, Indian oil and gas companies in response bought shipments of US crude to check for cost competitiveness and its compatibility with Indian refinery configuration. India is also trying to increase its use of natural gas in the energy mix from current 6% to 15% within five years inorder reduce dependence on oil and to secure energy supplies and reduce emissions by using more natural gas.
India and Canada have signed six agreements in different fields including nuclear science, energy cooperation, sports, education, science and technology cooperation and information communication technology.
These agreements were signed after delegation-level talks between Prime Minister Narendra Modi and his visiting Canadian counterpart Justin Trudeau in New Delhi.
Agreements signed are
- MoU on Cooperation in Sport.
- MoU for Cooperation in Higher Education.
- MoU for Cooperation on Intellectual Property Rights.
- Terms of Reference for the India-Canada Ministerial Energy Dialogue.
- MoU for cooperation in the Fields of Science, Technology and Innovation.
- Joint Declaration of Intent on Cooperation in the Field of Information Communications Technology and Electronics.
India-Canada share strategic partnership underpinned by shared values of democracy and pluralism. It has significantly expanded in recent years aided by heightened economic engagement, regular high level interactions and long-standing people-to-people ties.
Canada is home to over 1.2 million Persons of Indian Origin (PIO) who comprise more than 3% of its population. The highly educated, affluent and industrious PIOs is one of largest immigrant groups in Canada. They are well integrated with mainstreamand also active politically.
The two-way trade between both countries has increased from US $3.21 billion in 2010 to US $6.05 billion approximately in 2016. India accounts for only 1.95% of Canada’s global trade. India exports to Canada include gems, jewellary and precious stones, pharmaceutical products, readymade garments, textiles, organic chemicals, light engineering goods, iron & steel articles, etc. India’s import from Canada include pulses, newsprint, wood
pulp, asbestos, potash, iron scrap, copper, minerals and industrial chemicals, etc. The cumulative Indian FDI was US$ 2093.53 million as against Canadian FDI of US$ 901.1693 million in India. Indian companies have invested especially in the IT, software, steel and natural resources sectors etc.