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Energy Demands Of India Find A Neighbouring Solution For The Future

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By Author: Sagar Pawar
Total Articles: 37
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The recent visits of Myanmar’s pro-democracy leader Aung San Suu Kyi and Bangladesh’s leader of opposition Begum Khaleda Zia need to be viewed strategically. The media and analyst, in general, missed the opportunity to showcase the vital roles of the two nations in accomplishing India’s dream of a more energy secure future, and geopolitically a more stable neighborhood. MBA international business has the ability to comprehend the current volatile situation in the energy sector. India’s new found status as an emerging market and political changes in these two nations provide a much better platform than ever before, of this being a reality. Before we test our optimism, let us evaluate some of the critical missed opportunities of the past.

Myanmar-Bangladesh- India (MBI) pipeline, a marvel in petroleum engineering, was one such critical initiative which did not take off, after the initial discussions in early 2000s. In subsequent years, Bangladesh became more flexible and a tri-party agreement was ultimately signed in 2010. Energy technology engineering exposed the possible delays in the proposed projects. Myanmar ...
... was reluctant in implementing the project since by then Chinese-Myanmar partnership to supply gas and related oil, via two pipelines, from the Shwe Gas field, had entered implementation phase.

Petroleum engineering has helped students to understand the feasibility of these giant global projects. Firstly, US sanction on a half-century old Myanmar military rule ended with pro-democratic steps and gave way to a civilian nominated U Thein Sein government. Secondly, Bangladesh has a pro-India Awami League government, led by Sheikh Hasina, at the helm for last two years. Thirdly, in terms of energy policy post-2005, a realization has dawned upon the leaders of Bangladesh that the current natural gas reserves would be depleted soon and hence there is a need to look for options. Fourthly, possibility & prospective of gas imports in this region (from TAPI, IPI, Qatar, Australia, US, Eastern Africa & South America) have become relatively clearer.

After understanding the details of the projects, institute of petroleum engineering combined statistics to see what the possible way forward is. The past couple of years have seen commendable traction on India-Bangladesh & India-Myanmar fronts. During the PM Singh’s visit 12 MOU were signed for collaboration in a wide range of areas including Infrastructure, Boarder Area Development, Trade, Information Technology, Education, Culture etc. A Myanmar-India pipeline would cost around $2.5-3 billion, and due to its passage through the North Eastern Part of India and associated development, the benefits would certainly out weight the costs.

India is already in the process of developing re-gasification terminal and associated LNG import facilities (cost ranges from $ 650 million (Hazira) to $1 billion (Kochi). As a second option, India may also consider sponsoring development of liquefaction terminal in Myanmar and import Gas as LNG to the east coast viably. Top colleges in Uttarakhand in the core sectors of energy and gas have reviewed the viability of these projects. It is extremely important that India strive for better relations with the two countries for strengthening its energy security. Indeed, energy is in India’s backyard!

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