Sakshi Education
1. Natural Gas the Clean Fuel of 21st Century:
Natural gas is a clean fuel and would be increasingly used in the 21st century. Gas is a mainly used in the power sector but is also used in refining, industry and domestic consumption.
2. Natural Gas Key to India|s Economic Growth:
India does not have the gas reserves to match its growing needs. India imports 67 million cubic metres of gas per day as part of its requirement of 150 million cubic metres (mcm) of gas per day. By 2020 India|s demand for gas could go up to 400 mcm per day. Thus, an assured supply of gas will be the key India|s economic growth of 8-9 per cent.
3. Transnational Gas Pipelines:
The Soviet Union constructed the first transnational gas pipelines in the 1970s to supply natural gas to West Germany and other parts of Western Europe. Currently Russia meets 30 per cent of Europe|s gas requirements. Currently over 100 gas pipeline projects valued at $100 billion are being implemented across the globe.
4. Main Sources of Natural Gas are in Asia:
Analysts point out that the main sources of natural gas are in Asia. Russia|s Asian area has 27 per cent of the world|s proven reserves, with Iran (15 per cent) and Qatar (14 per cent) following. Over 70 per cent of the world|s reserves of natural gas are found in northern Central Asia and the Gulf.
5. Transnational Gas Pipelines to Increase in Asia with Increase in Demand for Gas:
The transnational gas pipelines across Asia are set to multiply with an increase in gas demand over the next few years. Thus, as the energy requirements of Asia increase, the transnational gas pipelines will play an increasingly important role in meeting these demands.
6. Advantages of Gas Pipelines:
A.Gas Pipeline the Cheapest Mode of Transportation:
There are three ways of transporting gas - by ships as Liquefied Natural Gas (LNG); through deep-sea pipeline; or by gas pipelines on land. Analysts point out that world over, gas pipeline transportation is the preferred mode for gas conveyance as it is the cheapest and does not entail any loss of energy in conversion.
B.India Should Make Gas a Strategic Determinant:
Analysts point out that of the total global energy consumption in world, gas accounts for 30%. Gas will be a key commodity in the overall context of India|s national security calculus. Gas is an eco-friendly energy product and will play a key role in contributing to India|s energy needs from automobiles to industrial use. India should make gas a strategic determinant.
C.Gas Pipelines will Offset the High Cost of Crude Oil:
Experts point out that in view of India|s growing energy needs, gas pipelines are seen as the best option for India given the high cost of crude oil and petroleum products.
D.Security Risk can be Offset by Economic Gains:
Analysts point out that the security risks to gas pipelines can be overcome by an international consortium with penalties for non-supply. The gas pipelines can bind countries through close economic ties, improving relations and avoiding hostilities. Thus the security risks can be minimised by the gains of economic prosperity.
E.Widen and Deepen Economic Relations in South Asia:
Analysts point out that the gas pipeline projects may in fact widen and deepen economic relations in South Asia. They could lead to the establishment of the much needed trust and confidence among India and its neighbours.
F.Big Confidence Building Measure with Pakistan:
Sections of Indian industry welcomed the proposed gas pipeline projects by emphasising that the projects can act as a potential conduit for peace and a big Confidence Building Measure (CBM) between India and Pakistan. The gas pipelines could lead to diplomatic and commercial dividends.
G.Increase Stability in the Region:
Analysts point out that the gas pipelines will bring direct and indirect benefits to the transit countries. Thus, Pakistan and Afghanistan, which have internal insurgency problems, will benefit from the transit of gas pipelines as it will guarantee a source of income and generate employment. This could help increasing stability in the region.
7. Risks Involved:
A. Security Risks:
Analysts point out that gas pipelines face the security risks and require credible national guarantees. Onshore pipelines are insecure and can be blown up by militants. Assam and Balochistan are the prime examples. It is also pointed out that the gas supplying nations, Iran, Turkmenistan, Myanmar and Bangladesh are not stable democracies. The transit country Pakistan has problems with India and is very unstable. Analysts feel that given the history of Indo-Pak relations and the growing extremism in Bangladesh, the vision of friendship through economic integration is gamble.
B. Transnational Pipelines can be Used as Political Tools:
Analysts point out that energy-rich countries are using the transnational pipelines as political leverage. These countries use the pipelines to forge political alliances, punish enemies and extract concessions from consumer nations.
C. High Economic Cost:
The energy-rich countries demand a higher cost for the supply of gas. Thus, the Iran-Pakistan-India project is unable to progress further due to Iran|s demand for a higher price.
Natural gas is a clean fuel and would be increasingly used in the 21st century. Gas is a mainly used in the power sector but is also used in refining, industry and domestic consumption.
2. Natural Gas Key to India|s Economic Growth:
India does not have the gas reserves to match its growing needs. India imports 67 million cubic metres of gas per day as part of its requirement of 150 million cubic metres (mcm) of gas per day. By 2020 India|s demand for gas could go up to 400 mcm per day. Thus, an assured supply of gas will be the key India|s economic growth of 8-9 per cent.
3. Transnational Gas Pipelines:
The Soviet Union constructed the first transnational gas pipelines in the 1970s to supply natural gas to West Germany and other parts of Western Europe. Currently Russia meets 30 per cent of Europe|s gas requirements. Currently over 100 gas pipeline projects valued at $100 billion are being implemented across the globe.
4. Main Sources of Natural Gas are in Asia:
Analysts point out that the main sources of natural gas are in Asia. Russia|s Asian area has 27 per cent of the world|s proven reserves, with Iran (15 per cent) and Qatar (14 per cent) following. Over 70 per cent of the world|s reserves of natural gas are found in northern Central Asia and the Gulf.
5. Transnational Gas Pipelines to Increase in Asia with Increase in Demand for Gas:
The transnational gas pipelines across Asia are set to multiply with an increase in gas demand over the next few years. Thus, as the energy requirements of Asia increase, the transnational gas pipelines will play an increasingly important role in meeting these demands.
6. Advantages of Gas Pipelines:
A.Gas Pipeline the Cheapest Mode of Transportation:
There are three ways of transporting gas - by ships as Liquefied Natural Gas (LNG); through deep-sea pipeline; or by gas pipelines on land. Analysts point out that world over, gas pipeline transportation is the preferred mode for gas conveyance as it is the cheapest and does not entail any loss of energy in conversion.
B.India Should Make Gas a Strategic Determinant:
Analysts point out that of the total global energy consumption in world, gas accounts for 30%. Gas will be a key commodity in the overall context of India|s national security calculus. Gas is an eco-friendly energy product and will play a key role in contributing to India|s energy needs from automobiles to industrial use. India should make gas a strategic determinant.
C.Gas Pipelines will Offset the High Cost of Crude Oil:
Experts point out that in view of India|s growing energy needs, gas pipelines are seen as the best option for India given the high cost of crude oil and petroleum products.
D.Security Risk can be Offset by Economic Gains:
Analysts point out that the security risks to gas pipelines can be overcome by an international consortium with penalties for non-supply. The gas pipelines can bind countries through close economic ties, improving relations and avoiding hostilities. Thus the security risks can be minimised by the gains of economic prosperity.
E.Widen and Deepen Economic Relations in South Asia:
Analysts point out that the gas pipeline projects may in fact widen and deepen economic relations in South Asia. They could lead to the establishment of the much needed trust and confidence among India and its neighbours.
F.Big Confidence Building Measure with Pakistan:
Sections of Indian industry welcomed the proposed gas pipeline projects by emphasising that the projects can act as a potential conduit for peace and a big Confidence Building Measure (CBM) between India and Pakistan. The gas pipelines could lead to diplomatic and commercial dividends.
G.Increase Stability in the Region:
Analysts point out that the gas pipelines will bring direct and indirect benefits to the transit countries. Thus, Pakistan and Afghanistan, which have internal insurgency problems, will benefit from the transit of gas pipelines as it will guarantee a source of income and generate employment. This could help increasing stability in the region.
7. Risks Involved:
A. Security Risks:
Analysts point out that gas pipelines face the security risks and require credible national guarantees. Onshore pipelines are insecure and can be blown up by militants. Assam and Balochistan are the prime examples. It is also pointed out that the gas supplying nations, Iran, Turkmenistan, Myanmar and Bangladesh are not stable democracies. The transit country Pakistan has problems with India and is very unstable. Analysts feel that given the history of Indo-Pak relations and the growing extremism in Bangladesh, the vision of friendship through economic integration is gamble.
B. Transnational Pipelines can be Used as Political Tools:
Analysts point out that energy-rich countries are using the transnational pipelines as political leverage. These countries use the pipelines to forge political alliances, punish enemies and extract concessions from consumer nations.
C. High Economic Cost:
The energy-rich countries demand a higher cost for the supply of gas. Thus, the Iran-Pakistan-India project is unable to progress further due to Iran|s demand for a higher price.
Published date : 10 Aug 2009 12:51PM
