The Obama administration on Friday gave a conditional nod for exporting of domestically generated liquefied natural gas (LNG) to countries which don't have Free Trade Agreement (FTA) with the U. S.

The US' decision to export LNG to non-FTA countries from Freeport Terminal on Quintana Island in Texas has major implications for India because will now be able to import much needed gas from the US.

While companies from Japan, China and Britain already have overwhelming stakes in the Texas company; India was not able to import gas from the company because it doesn't has an FTA with the US.

The US Department of Energy said that the approval for exports of domestically produced LNG to non-FTA countries would not affect adversely the availability of gas to domestic consumers.

The department said in a statement, "We further find that granting the requested authorization is unlikely to affect adversely the availability of natural gas supplies to domestic consumers or result in natural gas price increases."

Phil Flynn, a Chicago-based analyst with the Price Futures Group, described the development as an historic moment for the US.

A steep increase in production of shale gas over past few years has placed the US in a position to be a major exporter of gas.