India on the Way to Attain Energy Security

The global scenario has undergone a drastic change in the recent times as the economies are striving to attain high economic growth rates by strengthening their resource base and securing energy supplies. It is apparent that a situation like this could breed resource wars amongst the countries. The Asian region has specially witnessed the increased competition for imports with the increasing reliance on energy resources. Natural gas is rapidly growing as the primary energy source all over the world and in Asia. The Asian countries are increasingly relying on the Middle East as the major supplier of energy.

India, being the world’s sixth largest energy consumer is endeavouring to establish itself as a secure economy and has realized the need for strengthening its power sector to ensure a sustained economic growth.

Technological advancement and accelerated economic growth in India has led the country to join the highly competitive set-up of energy dynamics. One of the biggest consumers of energy in the world, India has started the quest of becoming one of the powerhouses of the future. With a view to meet the challenges of the energy industry, India is making investments in the energy infrastructure to meet the growing demands. Though being the third largest producer of coal in the world, India relies heavily on the oil and natural gas imports due to high energy consumption rate in the country.

An advantageous geographical location of India entitles it to import oil and natural gas from the middle-east countries which are the reservoirs of resources. This not only helps India secure economic growth, but would also facilitate the strengthening of bilateral relations with the neighbouring countries. The task, however, has not been effortless. The hindrance in the pipeline projects has forced India to import natural gas in the form of LNG from countries like Oman and Qatar.

India entered the LNG race in 2004 with its first LNG Terminal set up by Petronet at Dahej on the west coast of the country. Anticipating the fact that the dependence on the oil and natural gas will increase in the coming years, India is emphasizing on the techniques for efficient use of energy and in developing alternative energy sources. At the same time, India is attempting to address the geopolitical concerns which are one of the major obstacles in the smooth imports of oil and natural gas from the neighbouring countries.

With the expansion of new LNG facilities at Dahej and the setting up of new Terminals at Kochi, Dabhol and Mangalore, India is preparing itself for a giant leap in the energy sector. At the same time, maintaining the imports from the countries like Oman and Qatar ensures that India does not lag behind in the race for securing energy supplies. A combination of strategically planned infrastructure, balance of geographical and political concerns and co-operative policies would pave the way for India to develop as a global powerhouse of the future.