India taking lead to create alliance of gas importers

The Dollar Business Bureau

Union Oil Minister Dharmendra Pradhan said that India is taking a lead for creating an alliance of gas importers all over the world for ‘reasonable and affordable pricing’.

Pradhan told the reporters, "We must have cooperation between all the LNG (Liquefied Natural Gas) and gas consuming countries, we must create a situation for a reasonable, rational and affordable price. India is taking the lead to create a network between these major gas consumers.”

He added that calling gas an important fuel will be an important constituent for the country’s energy basket. The state-run GAIL is taking a lead in the negotiations between companies at the international level.

GAIL is already in contact with the companies in South Korea and Japan. However, there is a possibility of adding China as a partner in the future.

China and India together will account for 90 percent of the gas demand increments in the next two decades. India has imported 37 percent of its gas requirement in the last year.

Talking about his upcoming visit to Russia, Pradhan said that he will attempt to strengthen the ties between the countries and added that ONGC Videsh Ltd(OVL) is in talks to take another 11 percent stake in the Vankor oil field that is owned by Ronsneft.

Regarding bidding the minister added that bidding for 67 assets offered under NELP will begin after July 15, after the road shows in Calgary, Bengaluru, Guwahati, Singapore, London and Dubai. 

India is working towards becoming an energy hub in Asia. The country is already supplying power to Nepal, Bangladesh, Sri Lanka and Bhutan and is in negotiations with Myanmar.

On a parting note the minister added that the current low price of oil is the new normal and specified that the buyers will have an upper-hand in the deals.