India's state-owned energy giant, GAIL (India) Ltd is planning to spend about $1 billion to acquire shale gas assets in North America in order to help meet the growing demand in the emerging Indian economy.
The company's managing director said on Wednesday that the assets in North America will provide a buffer for the planned imports of U. S. liquefied natural gas into the country.
"We need gas, so equity gas is also required," B. C. Tripathi, managing director at GAIL. He was speaking on the sidelines of the World Gas Conference in Kuala Lumpur, Malaysia.
The company had signed an agreement in December to buy 3.5 million tonnes a year for 20 years from 2017. Under the deal U. S.-based Cheniere Energy will supply 3.5 million tonnes of LNG a year during a20-year period starting from 2017.
GAIL is also in discussions with Macquarie Energy and acquired a 20-percent stake in one of Carrizo Oil & Gas Inc's U. S. shale gas assets for $300 million. India is already the eight largest imported of LNG in the world and this is set to rise in the coming years as its domestic output has fallen and the demand is set to rise significantly.