Russian-Indian energy cooperation has good prospects, believes the head of special projects of the National Energy Security Fund Alexander Perov.
Energy cooperation between Russia and India goes uphill
Indian Ambassador to Russia Venkatesh Varma declared, that Delhi considers Moscow as one of the main partners of India in the development of national energy and related economic projects.
Deliveries from Russia should help India solve the ambitious task of transferring transport to alternative energy sources. India considers Russia as a supplier of not only oil, but also coal, LNG and other energy resources.
Indians are interested in the idea of an energy bridge, about which Russian President Vladimir Putin and Indian Prime Minister Narendra Modi agreed at a forum in Vladivostok. The basis of this concept is the increase in deliveries from Russia.
In September, the head of Rosneft, Igor Sechin, paid an official visit to India. During this trip, amid attacks on Saudi fields, Sechin agreed with Delhi to increase the supply of Russian oil to Indian refineries.
India does not have serious deposits, but built many refineries, making itself a leading player in the Southeast Asian market.
Besides, Russia and India cooperate in the framework of Sakhalin-1 projects, Far Eastern LNG, “Taas-Yuryakh” and development of the Vankor cluster - in this Russian undertaking, Indian partners own 49% shares. Still Indians show interest in East Oil, which aims to develop Arctic energy resources in Russia.
India is the fourth country in the world in terms of total energy consumption after China, USA and Russia, ranks fourth in oil and LNG imports and third in coal production and consumption. Oil and coal make up 70% country energy balance, and these volumes are increasing. At first, India's population is growing, and secondly, 20% Indian energy consumption is biomass.
The share of gas in the Indian energy balance is only 5%, what caused Delhi's keen interest in Russian LNG and in participating in the development of gas fields in Russia.
India's value will grow
“India is seen as a promising market for domestic energy. This is especially true of the coal sector - India is in first place in the world in coal mining, but Russia supplies its raw materials to this country ”, – states Perov.
Russian coal is imported by Indian metallurgical companies, playing a major role in the market of Southeast Asia and the world.
“It should be noted and cooperation in the nuclear industry. Since Soviet times, our countries have developed excellent relations in the nuclear field. It is superimposed on it and then, that the Russian Federation has been trying for several years to make a turn to the East and diversify the main directions of the supply of its energy resources ”, – summarizes Perov.
India, along with China, is considered the most promising market for Russian energy resources to the east. Predicted today, that India at some point will be able to overtake China in its economic indicators.
In the past year, India has become the most growing economy in the world., contributing to population growth. Neither coronavirus will prevent this., no other diseases rampant there. India's value will grow gradually, what we see on the arms market.
India has been a premium market for military equipment for many years., moreover, the same process is happening in the energy market.
“Unlike China, India does not have significant energy resources, therefore, it will import more energy. obviously, that the Indian market in the coming years will become the most delicious in the global energy sector ”, – concludes Perov.
The only obstacle is logistics
The main problem of our relations with India is logistics - this country is separated from Russia by Central Asia, Afghanistan and Pakistan, therefore, the delivery of our resources is possible only by sea, and it’s not so cheap.
“We are trying to be not only a resource partner of India, but also engage with Delhi in a deeper partnership. This is nuclear power., where the Indians have good practices. This is oil refining - Rosneft became the owner of one of the largest Indian oil refineries in Asia. Our cooperation is not limited only to the sphere of clean energy supplies ”, – states Perov.
According to Alexander Valentinovich, Indian side is interested in deliveries from Russia, because of which even a gas pipeline project through Afghanistan was proposed, even today it cannot be realized due to the terrorist threat.
“If Russia takes the initiative in relations with China, then India itself makes requests to Moscow ”, – summarizes Perov.
Indian companies are actively involved in energy projects in Russia, moreover, it is gas and coal, therefore, our interests have long been tied together, and the main question is their intensification and expansion.
“Capital from India is significantly represented in the Russian energy cycle, so we have something to push from, and the only obstacle is geography, but in the future this is a resolved issue, – concludes Perov.
Dmitry Sikorski
