India�s Transnational Pipeline Diplomacy

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By: Beroe Inc. --

12 May, 2014

India�s Transnational Pipeline Diplomacy
ARTICLE

There has been a significant development in Indian Natural Gas Industry for last few decades. With major gas discovery in KG basin by Reliance Industry, India's production of natural gas has almost doubled from 31.76 BCM in 2004-05 to 48 BCM in 2011-12. Also, with introduction of term LNG the gross natural gas available for usage has doubled from 2004 to 2012 to 66.01 BCM. The share of natural gas in India's energy basket is expected to grow from 10% to 25% by 2025. With such high demand for natural gas India will have to consider alternate sourcing options from other energy rich nations and develop a robust infrastructure for transportation of natural gas. One such option, which India has been considering for a long time is transnational gas pipeline. There are three transnational pipeline which are currently in talk are TAPI, IPI and MBI. Though all these pipelines were proposed at a very early stage, but still none of the project has actually kick started, except for TAPI which seems to be turning into reality by 2017. The other two projects are caught between various problems like geopolitical, socio-economic and policies issues. This article will briefly describe all these problems and how it will impact the future of Indian Natural Gas Industry. There has been a significant development in Indian Natural Gas Industry for last few decades. With major gas discovery in KG basin by Reliance Industry, India's production of natural gas has almost doubled from 31.76 BCM in 2004-05 to 48 BCM in 2011-12. Also, with introduction of term LNG the gross natural gas available for usage has doubled from 2004 to 2012 to 66.01 BCM. In spite of growth in the production, the demand for natural gas has been growing at a relentless pace and is expected to do so in the future as well. The share of natural gas in India's energy basket is expected to grow from 10% to 25% by 2025.� The two major consumers of natural gas are power sector and fertilizer sector. Nearly 70-75% of the domestic production is allocated for these priority sectors, and the remaining gas is allocated to non-priority sector like Domestic, Tea plantation, Sponge Iron Petrochemical, Industrial fuel, LPG shrinkage etc.




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