India is counting on the "Power of Siberia"

Discussion in 'Economy & Infrastructure' started by sorcerer, Nov 1, 2014.

  1. sorcerer

    sorcerer Senior Member Senior Member

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    India and Russia are exploring the possibility of extending the pipeline "Power of Siberia" to India. This was announced by the co-chairman of the Committee on Hydrocarbons in the Federation of Indian Chambers of Commerce and Industry Narendra Taneja on the sidelines of the Oil & Money conference being held in London.

    Negotiations are being conducted at the highest level, and there is the political will to implement this project.

    The initiative for the proposed collaboration was taken by India. Russian President Vladimir Putin supported it in his first meeting with the Prime Minister of India Narendra Modi, which was held in mid-July in the Brazilian city of Fortaleza in the framework of the BRICS summit. Now the experts are studying the technical details of the extension of the gas pipeline from Russia to China to the border with India.

    The project is technically complex – there are bound to be high mountains and deep gorges in the way of the gas pipe. The numbers of supporters of subordinating the pipeline "Power of Siberia" not only to the energy security interests of China, and of India, are almost equal today. The resource capabilities of Russia are not discussed - they are sufficient to meet the demand for gas in both countries.

    President of the Union of Oil and Gas Producers of Russia Gennady Schmal believes that the project will be the subject of negotiations during the visit of President Vladimir Putin to India in December. On the whole, energy package will be one of the principal topics in these negotiations:

    “Certainly, this is true, the more so because we have something to offer, and India desperately needs energy. India has built the most powerful refinery in the world with a production of 62 million tonnes. This is a unique plant, but it requires raw material. And in this respect the Russian oil assets and the possibilities of Russian deposits are certainly interesting. It is not a coincidence that Indian companies are going to explore new areas of oil and gas in Sakhalin - Sakhalin-3 and Sakhalin-4. They are also interested in the Russian Arctic shelf. Indian companies are quite active and aggressive players in the Russian oil and gas market.”

    "Rosneft" has signed an "Arctic memorandum" with the Indian company ONGC Videsh in May. It involves joint geological survey, exploration and production of oil and gas on the continental shelf of the Russian Federation in the Arctic. The memorandum envisages the prospects of creating a consortium with Indian companies. It is possible that its creation will be announced on the sidelines of the Indo-Russian summit in New Delhi in December. The implementation of this memorandum will mean that for the first time India will extract hydrocarbons within the Arctic Circle with the help of Russia. Earlier, China had made a breakthrough in the Arctic with Russia's help​​.

    At the London Conference on Oil & Money, the Managing Director of ONGC Videsh Narendra Kumar Verma said that the company is also interested in a project to develop the Vankor oil and gas field. It has received a proposal from "Rosneft" to acquire a stake of 10 percent for $ 1 billion. This is a good offer, says Gennady Schmal:

    “All countries are interested in oil and gas assets. China buys up any oil assets throughout the world. In Canada, for example, they have invested more than $ 30 billion in them. In Kazakhstan, they have bought all the refineries. If India participates in the development of Vankor, it will be entitled to share not only dividends but also oil. Although Iran and the Middle East are in India’s backyard, it is always necessary to have a certain diversification of supply. I am convinced that the Indians will be interested in any assets in Russia.”

    The official start to the construction of the "Power of Siberia" pipeline from Yakutia to China was given on September 1 this year. Its commissioning is slated for the year 2020. Agreement on the "Power of Siberia" was signed in May in Beijing and has been called the project of the century.

    India is counting on the "Power of Siberia" - News - Economy - Russian Radio
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    The offset which has emerged during the Ukranian crisis is actually redefying the conduct of Asian countries. So far..so good.
     
    pmaitra and Srinivas_K like this.
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