Sourcing of Natural Gas Through Cross Border Pipelines

Abstract

In the era of economic modernization and globalization, India has unfolded itself as central economic and trading zone in emerging Asian market and has focused a lot towards its foreign policies impacting its accelerating economic performance. Private sector involvement in power sector and rationalization of prices has forced India to look for efficient energy management system. Natural gas, a highly promising commodity in India, is presently supplied from only two sources, i.e. domestic production and liquefied natural gas (LNG). But now instead of importing costly LNG, India has to examine and start importing through low-cost cross-border pipelines. Technological development in the field of deep-sea pipelines has made it possible for India to consider importing natural gas from Iran and other Middle East countries, bypassing countries such as Pakistan and Afghanistan having serious security issues. Construction of Turkmenistan–Afghanistan–Pakistan–Indian (TAPI) pipeline has already started and Indian government has also initiated discussions with Oman, Myanmar, Kazakhstan and Russia for new pipeline projects. Indian Prime Minister Narendra Modi can imagine energy has beating heart of accelerating India and pipelines as its veins, hence to deal with energy diplomacy and to have sufficient amount of fuel, he is focusing on developing strong and long-term strategic relationships with resource-rich countries. This will give a big boost to the natural gas industry in India.