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US needs to invest $150 bn in gas infrastructure

IANS  |  New Delhi 

The US needs to invest $150 billion in to be able to service its growing production, even as it is capable of supplying the clean fuel at most competitive prices, an American said on Thursday.

Speaking on the last day of the 16th International Forum here, Senior said that since rising prices were spurring higher production, US producers were facing a quandary due to lack of to evacuate the associated gas produced.

"We need well over $150 billion worth of investment in infrastructure in the US to support the coming online," Hochstein said.

"Shale producers are reaching a point where they have to make a decision on whether to restrain their production in because they don't have the ability to evacuate the gas produced," he said.

According to the executive, historically America's infrastructure was not built to handle the shale and gas revolution where producers are able to quickly step up production when prices rise.

Another problem, he said, was that there had been too little investment in constructing liquefied (LNG) terminals which could be used to export the

Hochstein earlier told reporters that his company was looking to to from their project under construction in the US at the price of $3 per unit, "which is the cheapest in the world".

"To this you would need to add $1.50 for the to India, and the only cost above this is that of the capital for investing to become a partner in our project," he said.

"is not selling gas -- we are selling a partnership, offering to customers to come and invest and become a partner in our asset. The first will be in the water by 2023."

Explaining that was expensive to produce, the American said the dynamics in the sector had changed.

"It is no longer a producer-consumer relationship. It is cheaper to buy than produce it. Even some producers in the have set up terminals to receive gas," he said, adding that US prices were very competitive for

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, April 12 2018. 19:04 IST
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