Vastavam web: Your author is going out on the proverbial limb. Bricks are mine to take, and if things pan out as analysed below, then the bouquets are welcome. On Sunday, September 22, US President Donald Trump and Prime Minister Narendra Modi will meet twice in Houston. One meet-up between the two leaders shall be at an event hosted by the Indian-American community, with over 50,000 in the audience where both Modi and Trump will be jointly present, and both shall address. The other meet-up will be a Modi-Trump summit.
This will serve dual interests India will secure energy security, of oil or gas supplies, at fixed rates, for the long term. And, Trump, will be able to tout to his American audiences that his international trade policies have been effective and that he has been able to bring in US$ x billions into the US economy — from a rising economy like India.
In this era of risk management of the supply-chains, therefore, why not India seal a deal with the US, for a long-term supply, especially now, when the US is surplus with oil, gas, shale — and the American fossil fuel industry is hungry for international markets? A long-term contract, hedging the risks, sounds logical for India. Makes sense for America. India needs to lock in energy security — fossil fuel-based. Will also be good for the United States, and for Trump.
If an announcement of a few billion dollars invested into the US economy is made by an Indian entity, it will help Trump to tell the American public that he is attracting FDI, investments, and creation of jobs in the US. Technically speaking the Indian FDI into America may be made by one of India’s top oil and gas companies, in the public sector, say, an ONGC Videsh, or GAIL, or a private sector company like a Petronet.
There are already reports that Indian gas importer Petronet LNG has signed an initial agreement with Tellurian Inc of Texas, to invest in its proposed Driftwood project in Louisiana, and buy liquefied natural gas (LNG) for deliveries to India. Irrespective of the investment vehicle from India, the news that should come out of Houston should be that India has sealed a deal to invest $X billion, into the American market. The US networks, broadcast media shall carry this news. Done, and dusted.