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Narendra Modi's Government must respond fast on long term Shale Gas deal with US

India is one of the major fuel importing countries and with unstable socio-political situations in most of the gulf countries, the fuel prices keep fluctuating. Keeping the market pressures in control is therefore necessary. With USA’s latest boom in Shale Gas production due to innovative methods, it now has vast amounts of gas that can be sold off. India is a good market for USA as China, unlike India, possesses huge natural gas reserves itself and it is aggressively working on better extraction technologies.

House bills (H.R.6, H.R. 2771) and a Senate companion bill (S 2494) if passed, will make it easier for the USA to export gas to more buyers in India and not just GAIL. In such a scenario, the fuel prices will tend to higher stability. India must act quick and ensure that it is a long term deal. Jayanta Roy Chowdhury, senior editor (Business) with “We have lost a similar opportunity in the past due to delays in decision making, when Australia was selling its gas at much cheaper rates.” Hopefully with a decisive Government it will act swiftly so that the opportunity can be utilised well.

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