A federal US trade body on Thursday announced to award a grant to an Indian company to accelerate its use of natural gas and improve energy access to support economic growth.

Under the grant, the US Trade and Development Agency (USTDA) will fund a feasibility study to evaluate the development of a virtual pipeline that will distribute natural gas via truck, rail or ship to areas unserved by traditional gas pipeline infrastructure.

The grant, which was not specified, has been awarded to Arush Gas Technology Services LLP, the USTDA said in a press release.

According to Thomas Hardy, USTDA's Acting Director the project will improve the resilience of India's energy network, making it better able to meet increased energy demand from industry and its citizens.

It will make a critical difference in achieving a cleaner and more resilient energy supply system in India, while creating significant opportunities for U.S. industry and American workers, he said.

USTDA said the new implementation of a flexible virtual pipeline network will serve as an interim transportation solution while India's physical gas pipeline infrastructure is developed, as well as a long-term option in areas where physical pipelines are not viable.

AGTS has selected Houston-bases Galway Group to conduct the study.

The natural gas virtual pipeline project transferring LNG across the country is a long-term parallel solution for natural gas in India; pipeline gas can cover only a segment of the energy landscape, even if the physical pipeline doubles up in fifteen years, said Shreyas C. Sheth, president, Arush Gas.

We believe the experiences from the US technology and services, lessons learnt will greatly benefit India. The Government of India, through its various departments and statutory directives is supporting this energy transition very effectively, and Arush Gas is proud to be a partner in this significant transition, he said.

Based on Galway Group's experience in the small-scale LNG and virtual pipelines segment, we are pleased to be given the opportunity to participate and contribute to India's clean energy strategy and virtual pipelines developmental framework, through this USTDA initiative, said Hal Miller, Chairman & CEO of Galway Group LLC, USA.

The study supports USTDA's US Gas Infrastructure Exports Initiative and the Administration's Asia Enhancing Development and Growth through Energy (Asia EDGE) initiative goals to strengthen energy security and expand energy access in partner countries, the media release said.