There has been a rise of 93 percent in the hydrocarbons trade between India and the United States in the past two years.

The strategic energy collaboration has emerged as a linchpin to India-U.S. ties after the Prime Minister Narendra Modi visited the United States in June 2017. And the work related to it got accelerated when Modi visited Houston in September 2019, writes India’s ambassador to the United States, Taranjit Singh Sandhu in an article in Houston Chronicle.

India’s pursuit for energy security provides eternal possibilities to the U.S organisations and has the capability to oil the engines of economic growth in both India and the United States.

The energy market in India is huge, which is flourishing swiftly, and it is the third-largest producer of electricity globally. It is set to be the largest energy market prior to 2030.

The IEA’s World Energy Investment 2019 report showcases that among major markets, energy investments in India have grown the most over the past three years, with a cost of $85 billion. India offers a vast market; the United States has adequate energy resources, and significant technologies including in natural gas and solar — the complementarities and synergies are salient, ambassador points out in his write up.

There has been a rise of 93 percent in the hydrocarbons trade between India and the United States in the past two years; it estimated $9.2 billion in 2019 and 2020. India is now the fourth largest international market for U.S. crude oil and the fifth largest for U.S. liquefied natural gas. Indian firms have concluded numerous contracts for sourcing crude from the United States and are spreading their investments in the U.S. energy sector, creating jobs and economic opportunities.

Both the nations are also working together to enhance cooperation in civil nuclear energy. Cooperation with the United States in the natural gas sector is a priority for India. As India expands into an increasingly gas-based economy, natural gas infrastructure — pipeline networks, city gas distribution grids and LNG terminals — is being scaled up across the country, the article states.

It further talks about the India-U.S Gas Task Force, under which numerous partnerships have been in process. It includes association between the respective regulatory entities on information exchange, between Bloom Energy and Indian Oil on fuel cell technology, and among ExxonMobil, Chart Industries and IOCL on stimulating LNG demand. Moreover, Indraprastha Gas Limited and Agility Fuel Solutions LLC and Gasway USA Inc. have unanimously concurred to expand the feasibility of advanced clean fuel systems.

"As India builds strategic petroleum reserves at home, India is also looking to lease crude storage capacities in the United States. An agreement for cooperation in this area was signed in July 2020. For clean energy, India is the new home. Buoyed up by the current progress, India is well on the target to create 175 Gigawatt capacity from renewables by 2022," ambassador Sandhu points out

Moreover, both countries are cooperating on various R&D initiatives. This emphasises on smart grids and energy storage, so as to improve efficiency and reliability of the electric grid. Other areas of collaborative research encompass advanced coal technologies for power generation and hydrogen production, including carbon capture, use and storage.

The U.S. Development Finance Corporation’s $600 million financing facility is directed for renewable energy projects in India, which is bound to encourage growth in the sector.