Government Trying To Reduce Energy Dependence On Gulf

Government trying to reduce energy dependence on Gulf countries, more emphasis on purchasing oil and gas from the USA and Russia. At present, India, which is mainly dependent on Gulf countries for its energy supply, will now turn to Russia and other countries after America.

Petroleum and Natural Gas Secretary Tarun Kapoor told media that Indian companies are preparing to buy new oil and gas blocks in many countries of the world amid huge turmoil in the energy market. Covid-19 has started making many changes in global diplomacy and the global economy.

In the new environment, India is also making an important change in its energy policy, that it no longer wants to depend only on Gulf countries for oil and gas. According to Kapoor, energy procurement has increased considerably in two years with the US and it is possible that it will become a reliable partner country for supplying oil and gas to India.

He said, “India has its own strategic reserves, Government trying to buy oil in the huge strategic reserves of the US so that it can be used in a future emergency or in case of crude cost.” India has replenished its strategic reserves after the steep fall in international crude prices in 2020. A few days ago, a memorandum of understanding has been signed between India and the United States, according to which the use of US strategic reserves can open the way forward.

Kapoor said that for energy security it is necessary that where oil and gas blocks are available, buy them now. Still, the state-owned ONGC (Videsh) has purchased about 30 such blocks abroad. India is eyeing natural gas blocks and for this, talks are being held at the government level.

Due to the use of liquefied natural gas (LNG) technology, it is now easier to bring gas from any corner of the world to India, which is why India has a special interest in investing in gas blocks. It is worth mentioning that during the visit of Prime Minister Narendra Modi to Russia last year, there were two important agreements in the gas sector between the two countries.

There is talk of developing a sea route between the Russian city of Vladivostok to Chennai Port. This route can be used for crude as well as LNG imports. Kapoor says that India currently meets 47 percent of its consumption from domestic sources.

But given the way the whole policy is being implemented to consume more and more gas, we will need a large amount of gas in three to five years. In the next two years, production from the domestic KG basin will increase considerably, despite much import from outside.