OIL engages US lobby firm to open gas exports.

NEW DELHI: State-run Oil India Ltd has knocked on the doors of a US lobby group - Indo-American Political Action Committee (IAPAC) - to persuade the US Congress to open up liquid gas exports to India.

This is perhaps the first time than an Indian energy firm is officially engaging a US lobby group on a policy issue . Lobbying is legitimate in the US and the external affairs ministry uses the services of lobby firms regularly . IAPAC lobbies with US Congressmen on enhancing trade with India and on bilateral issues.

Sources said OIL chairman S K Srivastava met the top four members of the group at Houston last month on shipping gas to India.

OIL's efforts could pay rich dividends for the company as well as GAIL and Reliance Industries Ltd. These firms have together pumped some $7 billion into buying stake in US shale gas assets but cannot ship gas to India since the US does not allow energy exports to countries such as India that do not have free trade agreement with Washington.

Only Cheniere Energy's Sabine Pass project in Louisiana has export permission . It has a 20-year contract with GAIL to supply 3.5 million tonnes of gas per year from 2017-18 . Export permission to other projects would depend on the outcome of a contentious debate raging in the US on whether exporting gas might hurt consumers by pushing up prices at home.

Sources said IAPAC told Srivstava that India should not seek the US waiver as a business proposal. Instead, it should stress the need for US gas to secure India's energy and food securities, environment protection and carbon reduction as well as India's strategic location in South-East Asia.

The lobby group has shared this new perspective with three influential Republican Congressmen know to be "friendly" to India - Ed Royce, Pete Olson and Ted Poe. Royce heads the crucial Congressional committees on foreign affairs and financial services. Olson is a member of the energy panel and Poe is a member of the foreign affairs committee .

OIL and IndianOil Corporation in October last year jointly acquired 30% stake in Carrizo Oil and Gas Inc's Colorado shale gas assets for $82 million. GAIL bought 20% of Carrizo's Eagle Ford acreage for over $63 million. Reliance has spent about $5 billion in buying various shale gas assets.

Source : timesofindia.indiatimes.com