Israel offers natural gas to India

Discussion in 'Foreign Relations' started by JAISWAL, Dec 19, 2011.

  1. JAISWAL

    JAISWAL Senior Member Senior Member

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    NEW DELHI: Israel, which suddenly finds itself flush with natural gas, has offered to export it to India. The offer was made by Israeli finance minister Yuval Steinitz to the Indian government during his visit here last week. In his conversations with finance minister Pranab Mukherjee and National Security Adviser Shivshankar Menon, Steinitz is believed to have said that Israel was looking to export gas to India.

    According to sources, the two countries will be setting up committees to do a feasibility survey of the offer. The discussions are expected to intensify during a rare visit by foreign minister SM Krishna to Israel in early January.

    India sources most of its natural gas from Qatar and Oman. Iran, which could have been a major supplier of LNG, cancelled a huge deal to India after it had been signed, following India's vote against its nuclear programme in the IAEA. A gas pipeline from Iran to India via Pakistan too has run aground on security considerations. Within the country, India's much hyped Krishna-Godavari gas basin has run into trouble after disagreement over pricing resulted in a drop in production. So India is in the market for big gas flows.

    Israel, which had been energy deficient for decades and locked in potentially unstable energy relationships with Arab countries that have been bitterly opposed to it, stumbled on a bonanza when huge quantities of natural gas were discovered off its northern coast. Gas is expected to start flowing from the Tamar field in 2013 and from the Leviathan in 2016. Varying estimates give Israel control over some 400 bcm of gas. It promises to reduce Israel's dependence on Arab states like Egypt and Jordan and offers the prospects of billions of dollars in revenue.

    Israel has already started the process of picking out export routes to Europe, through Greece and Cyprus. In the east, energy-hungry India offers the best market that is also free from political troubles for both countries.

    Israel and India have grown closer in the past decade through a strategic partnership that includes defence, count-terrorism and intelligence. It has also flourished despite the fact that India has strong traditional relations with the Arab world.

    In the early part of this decade, there was talk of a Medstream pipeline carrying gas and oil from Turkey though Israel which would be bound for India. But with Israel-Turkey relationship deteriorating significantly in the past couple of years, that pipeline has been shelved for the present.

    India is not only energy-deficient, it is overly dependent for oil from West Asia, many countries of which are in the midst of unprecedented political ferment. The Indian growth story would be severely impacted in the event of higher energy prices, or a shortage brought about by external factors. For the past decade, Indian governments have been engaged in diversifying energy sources -- from nuclear to renewable, gas to wind, India wants it all.

    Post-Iran deal fiasco, India gets Israel’s gas offer - The Times of India
     
    Neil, ALBY, W.G.Ewald and 1 other person like this.
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  3. Tshering22

    Tshering22 Sikkimese Saber Senior Member

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    We must take up the offer. As such we are over-dependent on Arabs for everything and the Islamic arm-twisting has now started affecting our internal politics. While what Israel has is limited, they're selling it to us. So we must take this opportunity.
     
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  4. agentperry

    agentperry Senior Member Senior Member

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    lots of complexity involved.

    economics in India-israel ties is dangerous.
     
  5. Nagraj

    Nagraj Regular Member

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    ^^Completely agree with tshering
    however it will be long long time before we see anything fruitful......
    in the meantime we remain dependent on arabs.
     
  6. W.G.Ewald

    W.G.Ewald Defence Professionals/ DFI member of 2 Defence Professionals

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    Good for Israel, since pipelines from Egypt are being blown up.
     
  7. W.G.Ewald

    W.G.Ewald Defence Professionals/ DFI member of 2 Defence Professionals

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    India eyes $14 billion investment in energy exploration round - Money - DNA

     
  8. indian_sukhoi

    indian_sukhoi Regular Member

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    Any idea who buys Gas and Oil from Israel presently?
     
  9. The Messiah

    The Messiah Bow Before Me! Elite Member

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    wouldn't it be easier and cheaper to buy from iran ?
     
  10. SADAKHUSH

    SADAKHUSH Senior Member Senior Member

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    We should reduce our dependence on Arab energy resources. It is one of the reason the Kashmir issue is not resolved. The behind he door pressure tactics has to be stopped. We should source our energy from other nations as well.
     
  11. The Messiah

    The Messiah Bow Before Me! Elite Member

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    kashmir issue has not been resolved because of our own mistakes.

    as far as outside forces are concerned then west has supported paki stance on kashmir more than arab league themselves. this is historical fact.

    and iran is not an arab country.
     
  12. pack leader

    pack leader Defence Professionals Defence Professionals

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    this is good news
    i wish you accept our offer
    BTW your government needs to hurry
    the ROK already has contracts with delek inc
    and the Japanese seem very interested as well
    may economic stability shine on all off us
     
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  13. Kunal Biswas

    Kunal Biswas Member of the Year 2011 Moderator

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    Welcome back PL..
     
  14. pack leader

    pack leader Defence Professionals Defence Professionals

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    thanks kunal
    OT:
    i have many story's to tell i was in Kazakhstan for 3 months
    see you in the chit chat thread
     
  15. pmaitra

    pmaitra Moderator Moderator

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    I think Indo-Israeli cooperation should increase beyond defense. This energy trade looks like a good idea, especially since we need energy.
     
  16. The Messiah

    The Messiah Bow Before Me! Elite Member

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    is there any market for our export products ?
     
  17. pack leader

    pack leader Defence Professionals Defence Professionals

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    Israels main import from India is raw metal (iron copper est est )
    we buy allot of metal for a small country (mainly for defense purposes )
     
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  18. mayfair

    mayfair Elite Member Elite Member

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    As long as it is economical, sustainable and the supplies reliable, we should go for it.
     
  19. IBSA

    IBSA Regular Member

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    I think India could buy gas from Israel, but I think Iran has more gas reserves and can sell by cheaper prices and lower transportation costs.


    I approve the India-Israel relations due to the commom high defence necessities, but India shall avoid a great aproximation to not affects her backing to Palestinian cause and her relationship with islamic nations. Thats can affects the Kashmir dispute and to lose the islamic nations allegiance to China.
     
    Last edited: Dec 20, 2011
  20. Tshering22

    Tshering22 Sikkimese Saber Senior Member

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    Iran is already a supplier. The problem with the supply of gas to India is a so-called country namely Pakistan in between. There is a very small corridor we can use under-sea for oil pipes that doesn't involve Pakistan. And there is no guarantee that in long term, they would disrupt the supply.

    Pipelines is out of question only because of Pakistan. If we had taken back POK, the pipelines could have come through Tajikistan straight feeding into Kashmir and directly into India (though working through Himalayas would be a challenge, due to both terrain and lots of pilgrimage places present there).

    That one mistake is costing us so much even today.
     
  21. Tshering22

    Tshering22 Sikkimese Saber Senior Member

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    Any ideas how you plan to supply the gas? I mean pipelines would be impossible in terms of laying down and even if we both manage to set it up, there is a 99.99% chance that Palestinian and other terrorist groups would be encouraged to disrupt the supply and make it look like a regional conflict with you guys, thus making our weak government not suspect any hand.

    Gas tankers is the only option and that might be really expensive.

    The other impractical option is to pass the entire pipeline through Africa via Mediterranean upto Kenya and then straight into Gujarat/Karnataka/Maharashtra state. It would cost both of us really bad.
     

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