India seeks giant gas deal with Russia in China's footsteps Read more

[Aarush]

Less than a month ago, China ensured that its voracious economy will have a steady supply of Russian natural gas for the next thirty years. Indian press reports that Narendra Modi would like to follow Xi Jinping's lead and connect India to the vast energy resources of Russia.

For a decade, Russian experts have been talking about making Russia the top energy supplier in Asia and creating a North-South energy axis that will inevitably lead to closer relations between the biggest geopolitical players on the continent. It seems that India's newly elected Prime Minister is willing to take the necessary steps to make Moscow's dream a reality.

Financial Express reports that Narendra Modi is considering an ambitious plan to extend the natural gas pipeline between Siberia and China all the way to India. The pipeline will link Russia's natural gas resources to Indian industrial and domestic consumers, drastically reducing the current exuberant energy costs that act as a drag on the country's economy. For Modi, industrialization is everything, because without industrialization he can't fulfill the promises he made to the India's poor and middle class citizens during the recent elections. However, industrialization without low energy prices is impossible and India's new leader is therefore obliged to seek cheap and reliable sources of natural gas and oil. The only reasonable option is to strike a long-term deal with Russia.

Critics of the project may point out that deliveries of LNG from Qatar will surely be cheaper, but there are several factors that make Qatar an unsuitable choice for Modi. Firstly, Qatar is an unflinching ally of the US and therefore if India angers Washington, it risks losing Qatar as a supplier. For Modi, who is trying to promote an independent policy based on "India first" principle, this should be unacceptable. Another risk factor is that Qatar has the possibility to sell its LNG everywhere in the world and India will have to pay a premium on top of the global price in order to have a steady supply of LNG. A pipeline from Russia through China to India has its own political risks, but it will inexorably link Russia to India, making Russia a committed long-term seller.

Financial Express reports that Modi will discuss this project at the upcoming BRICS summit with the Russian and Chinese leaders. If this ambitious project is approved during the summit, it will send a very strong political message to the world and will usher in a new geopolitical era for the Asian continent.

India seeks giant gas deal with Russia in China's footsteps - News - Reality Check - The Voice of Russia: News, Breaking news, Politics, Economics, Business, Russia, International current events, Expert opinion, podcasts, Video

India eyes extension of Russia-China gas pipeline - Reports - CİHAN

 

[Tshering22]

Less than a month ago, China ensured that its voracious economy will have a steady supply of Russian natural gas for the next thirty years. Indian press reports that Narendra Modi would like to follow Xi Jinping's lead and connect India to the vast energy resources of Russia.

For a decade, Russian experts have been talking about making Russia the top energy supplier in Asia and creating a North-South energy axis that will inevitably lead to closer relations between the biggest geopolitical players on the continent. It seems that India's newly elected Prime Minister is willing to take the necessary steps to make Moscow's dream a reality.

Financial Express reports that Narendra Modi is considering an ambitious plan to extend the natural gas pipeline between Siberia and China all the way to India. The pipeline will link Russia's natural gas resources to Indian industrial and domestic consumers, drastically reducing the current exuberant energy costs that act as a drag on the country's economy. For Modi, industrialization is everything, because without industrialization he can't fulfill the promises he made to the India's poor and middle class citizens during the recent elections. However, industrialization without low energy prices is impossible and India's new leader is therefore obliged to seek cheap and reliable sources of natural gas and oil. The only reasonable option is to strike a long-term deal with Russia.

Critics of the project may point out that deliveries of LNG from Qatar will surely be cheaper, but there are several factors that make Qatar an unsuitable choice for Modi. Firstly, Qatar is an unflinching ally of the US and therefore if India angers Washington, it risks losing Qatar as a supplier. For Modi, who is trying to promote an independent policy based on "India first" principle, this should be unacceptable. Another risk factor is that Qatar has the possibility to sell its LNG everywhere in the world and India will have to pay a premium on top of the global price in order to have a steady supply of LNG. A pipeline from Russia through China to India has its own political risks, but it will inexorably link Russia to India, making Russia a committed long-term seller.

Financial Express reports that Modi will discuss this project at the upcoming BRICS summit with the Russian and Chinese leaders. If this ambitious project is approved during the summit, it will send a very strong political message to the world and will usher in a new geopolitical era for the Asian continent.

India seeks giant gas deal with Russia in China's footsteps - News - Reality Check - The Voice of Russia: News, Breaking news, Politics, Economics, Business, Russia, International current events, Expert opinion, podcasts, Video

India eyes extension of Russia-China gas pipeline - Reports - CİHAN

We really need this deal. Being energy-independent through reliable partners like Russia is important step. They will get an excuse to vector their European trade with us while we will get a strong, reliable supplier who passes his LNG from a strong stable nation like China, that doesn't have the problem of terrorism or separatism to that extent.

Once we fastrack our thorium reactor tech, combined with this pipeline, India is energy safe for many years.

Other than this, Pradhan should also focus on getting more oil from African countries and even Venezuela, Russia and Vietnam's oil blocks that we have acquired. The lesser we depend on a single region, the better our country gets.

 

[vK_man]

We really need this deal. Being energy-independent through reliable partners like Russia is important step. They will get an excuse to vector their European trade with us while we will get a strong, reliable supplier who passes his LNG from a strong stable nation like China, that doesn't have the problem of terrorism or separatism to that extent.

Once we fastrack our thorium reactor tech, combined with this pipeline, India is energy safe for many years.

Other than this, Pradhan should also focus on getting more oil from African countries and even Venezuela, Russia and Vietnam's oil blocks that we have acquired. The lesser we depend on a single region, the better our country gets.

This is a deal to keep Russia from being influenced by China totally. Plus Russia is source of stable gas.Russia can build a pipeline through himalayas(russia built deep sea south stream which a thousand kilometer deep sea offshore or even via lng ).

Venezuala is a sensible bet for oil .Russia we can buy from ESPO .Avoid Saudi totally. Plus Rosneft is the intermediary for iranian oil so again we can get rosneft to sell us oil.

 

[Tshering22]

@vostok , @ptldM3 , @senheiser

Что вы думаете?

 

[senheiser]

i hope it will be accomplished, for india having a choice will allow them to negotiate also a lower price from the Qataris who completely overcharge for their LNG BS, thats why there are the richest country on earth. They have countless money to waste like funding terrorism like it is in syria and iraq. People need to boycott qatar and the other overfed parasite states (black)

 

[vostok]

@vostok , @ptldM3 , @senheiser

Что вы думаете?

I think it's a great idea. Hopefully, this will help to ensure that India will eventually come to the side of nascent alliance Russia + China.

 

[Mr.S.Singh]

we got gas from Qatar at $5-7, how much would this supply cost ?

 

[Tshering22]

we got gas from Qatar at $5-7, how much would this supply cost ?

Even is it is initially higher, in long term it will reduce. Also Russia is far now independent than GCC states.

 

[Mr.S.Singh]

Even is it is initially higher, in long term it will reduce. Also Russia is far now independent than GCC states.

let alone the ruskies .. we have 6.3 TCM of shale gas, more are being discovered .. when do we start tapping them ?

 

[mandrom]

we got gas from Qatar at $5-7, how much would this supply cost ?

India buys at oil indexed price of 9-12$ as of now from Qatar.

let alone the ruskies .. we have 6.3 TCM of shale gas, more are being discovered .. when do we start tapping them ?

The wellhead cost of producing shale gas is 3.5$-7$/mcf which means per mcm it is 120-240 dollars. Shale gas is an expensive option ,unless it is a byproduct of associated gas or wet gas/oil production.

 

[amitkriit]

I think it's a great idea. Hopefully, this will help to ensure that India will eventually come to the side of nascent alliance Russia + China.

India will never be a part of any such alliance. Russia is not USSR, joining any such alliance will severely restrict India's position and the opportunities which might come our way otherwise. This energy deal will be win-win but India must not give any leverage to Russia. We must keep diversifying our basket.

 

[Mr.S.Singh]

The wellhead cost of producing shale gas is 3.5$-7$/mcf which means per mcm it is 120-240 dollars. Shale gas is an expensive option ,unless it is a byproduct of associated gas or wet gas/oil production.

Shale gas was expensive when the americans started it too, past couple of years its break-even costs have come down 40%, it is going to be expensive in India too but adance technology have made it cheaper in US and people hope to replicate it in India too

http://www.ey.com/Publication/vwLUA...ns_for_India/$File/EYIN1210-084-Shale-gas.pdf

 

[mandrom]

Shale gas was expensive when the americans started it too, past couple of years its break-even costs have come down 40%, it is going to be expensive in India too but adance technology have made it cheaper in US and people hope to replicate it in India too

http://www.ey.com/Publication/vwLUA...ns_for_India/$File/EYIN1210-084-Shale-gas.pdf

The cheapest that Americans achieved for dry shale gas is 2.88$/Mcf in Marcellus at wellhead. In other places it is not economically viable or it is being sold as a byproduct of wet gas processing or shale oil production. Chespeake is in bad shape because it invested too much in acreage with dry gas. The only ones which are successful are the ones operating in Williston Basin,North Dakota or the ones in Eagleford ,texas involved in wet gas or oil production. Plus you need a very developed pipeline network. And shale wells have very rapid well decline curves.

 

[Mr.S.Singh]

The cheapest that Americans achieved for dry shale gas is 2.88$/Mcf in Marcellus at wellhead. In other places it is not economically viable or it is being sold as a byproduct of wet gas processing or shale oil production. Chespeake is in bad shape because it invested too much in acreage with dry gas. The only ones which are successful are the ones operating in Williston Basin,North Dakota or the ones in Eagleford ,texas involved in wet gas or oil production. Plus you need a very developed pipeline network. And shale wells have very rapid well decline curves.

I have a couple of friends working in Houston on Shale gas, they do have a concern of collapse, they say it is a learning curve for them too as it is a totally new technique of extracting gas.
Again in India, it will be tricky, we cant extract gas from our Basins properly, this is a far fetched dream

 

[Tshering22]

let alone the ruskies .. we have 6.3 TCM of shale gas, more are being discovered .. when do we start tapping them ?

As soon as we get rid of communist terrorists called naxalites sitting on a wealth of resource rich land in central and eastern India. The day they are dispatched to hell with army's artillery and gunships raining death from skies, we will have the freedom to tap into our resources.

India will never be a part of any such alliance. Russia is not USSR, joining any such alliance will severely restrict India's position and the opportunities which might come our way otherwise. This energy deal will be win-win but India must not give any leverage to Russia. We must keep diversifying our basket.

It is a TRADE deal. Not a military alliance.

Know the difference.