The Government's ambitious move to facilitate shale gas exports from the US seems to be facing serious impediments within that country as according to top official sources a strong energy lobby consisting mainly of America's domestic petrochemical sector has been making efforts to thwart the Obama Administration from allowing movement of the environment-friendly gas to New Delhi.

On the other hand the Indian Government has expressed that it is "quite keen" that shale gas exports from the US happen as soon as possible as it is an environment-friendly mode of energy. In fact Indian official circles are optimistic of a smooth resolution of the matter and this optimism stems from the fact that Petroleum Minister M Veerappa Moily has just come back from a 10-day tour of the US where he even visited some of the shale gas blocks. 

Highly placed sources told The Pioneer that though the US Government had recently given an in-principle okay to a third party study conducted by an agency on long ranging effects of exporting lNG to countries with which it has no Free Trade Agreement (FTA) like India, there is strong opposition to the proposed move by the concerned lobby.

Top sources in the Petroleum Ministry said that America's energy sector mainly the petrochemical lobby has been trying hard to block any intention of the US Government to export shale gas to India and other nations with which it does not have a FTA understanding.

They further added that the lobby is also "strongly" opposing a legislation which earlier this month had been introduced in the US Senate by a bi-partisan group of four top American Senators which would help facilitate export natural gas to non-FTA nations.

Ministry sources told this correspondent that New Delhi is keeping a close watch on the situation panning out in the US. In fact official sources indicated that India had perceived some opposition from the US' domestic sectors on the proposed move, however it was confident that there won't be any problem as in the long run export of lNG would only benefit both the US as well as India.

Apart from Moily's recent US visit, New Delhi's confidence also stems from the US Government giving its in-principle approval to a third party report on lNG exports, which it had commissioned last year, and from the legislation moved in that country's Senate.

As reported earlier, the report was commissioned in order to study the long ranging effects of exporting lNG to various countries with which it has not signed the FTA pact, on America's domestic energy and manufacturing sectors' requirements.

The US currently does not export shale gas to those countries with which it has not signed FTAs like India.

The final report of the study was posted on the website of US Government's Energy Department in December last year and it had given 45 days to stakeholders to give their comments on it, which have already been received.

As of now US allows only limited lNG exports through Sabine Pass lNG terminal to those nations with which it has not signed any FTA including India. Once full-fledged exports are allowed then it would benefit India as shale gas is a cost effective mode of energy.