We welcome it?

More than the pure economics, the economics costs involved, such high-stake sectors like natural gas, coal and even the benefitting sectors like power generation and fertiliser industries that would be the biggest users of natural gas, it is the worry about the transparent governance, transparency  behaviour of the political class, the bureaucracy and others are the worrying factors.

Somehow, we have become a country that present a weak governance mechanism, we seem to have become more and more prone to high corruption, through some peculiar Indian way of doing things. It is our inefficiency that contrasts with the China’s more dynamic and most be efficient conduct of government business.

We must have natural leaders. Talking men and women, not a nation of dumb creatures!

Two things stand out when we talk of gas supplies, gas imports and the domestic gas production.

One, there is every likelihood that we, in the next phase of importing natural gas that is red hot news now and it is going to emerge as the main traction as a transport fuel of the future.

One, we, given the   weak governance syndrome, might repeat another Coalgate!

We might also further succumb to the import lobby of which Veerappa Moily spoke about not long ago.

So, there is the technical aspects of how to import more gas and at what price and also the political, governance aspect of how not to succumb to the corporate and other corporate and bureaucratic lobbies.

It is these possible issues that our more knowledgeable politicians, MPs, Communists and others might talk about in a language that the common man will understand and also become more sensitive to issues like corruption at high places and also become more economically well-addressed.

We request our hon’ble MPs, Opposition leaders, and experts, spokespersons to speak and enlighten the public opinion on these critical economic and strategic issues.

We have to give up cheap politics!
And cheap publicity!

Our Communist friends must become more mature and responsible!
We have to import natural gas in large quantities and these calls for wisdom and also big chunk of funds!

This no one realises. Anyone can criticise a policy decision. But one has to come out with an alternative policy. Thai is wisdom. That is statesmanship.

What is the alternative?

There are no good economic ministers in the government!
Moily is okay but then we need very competent economic administrators, even some experts and technocrats have to be entrusted with the sector’s management.

There is a weak decision making owing to several factors.
One is weak leadership. Second is the lack of commitment.
There is so much a crony capitalism.

The scandals all centre around how the government is subjects itself to pressures from corporate houses.

We can name names!

Why then the media and the politicians talk in double tongue?
When there is such a severe supply constrains for the natural gas, which, India imports from far off Qatar and in the absence of any pipeline, only through the ships, and it costs a hell of a lot!

India imports 80 per cent of its oil and gas from other countries.The Reliance gas field in KG D6 basin is only one of its kinds. So, Reliance gas production has become a dispute between the government and the Communist party!
It is not so simplistic, comrades!

So, the Cabinet had no other way than to enhance the price, from $4.2 mbtu to $ 8.4 mbtu from April 1, 2014.

Yes, the hike would automatically lead to hike in prices of energy; power tariffs would go up, fertiliser costs and make CNG transportation more costly.

What are the alternatives?
Will somebody else give a clear way out?
The major players in this sector are:
Oil India Limited.
2. Oil and Natural Gas Corporation Ltd.
The private company, Reliance, RIL.

The prices would be reviewed every three months. These are all reasonable recommendations. What we need is the international market in gas. We have to import natural gas from Qatar, Iron and Russia and these countries don’t come easily to our rescue. There is an international trading system and India has to come as a winner at the end of the day.

It is time we give up cheap politics and cheap publicity!

Writes one knowledgeable insider, the editor of a Middle East Oil and Gas magazine or journal that Qatar is the first country to export natural gas to India and Qatar is also the world’s biggest supplier.

The gigantic project of transporting natural gas through a multi-country pipeline through Afghanistan, Pakistan and India met with insurmountable border issues, in fact, the pile line is conceived to go up to Myanmar. Now, the only option seems through ships.

Coal is still a powerful source of energy for the North America.

There is a weak demand in the EU. So, Asia would become the market for natural gas. Now India imports LNG, through various agencies. There are two operating terminals we are told, the two only in Gujarat. Dahej and Hazira. India’s major importer Petro net LNG, has deals with Australia and US. The share of Qatar’s LNG exports to Asia has reached 73.5 per cent in January 2013.This means a sharp jump.

So, we have to negotiate for a long-term contract with Qatar. Qatar values India as the largest democracy and we have to become closer in cultivating this gulf nation.

That is all fine. There is much work for the government to do. How the natural gas market moves forward is a hot topic in all these gas supply countries, from Iran to Russia to Qatar.

0 Thoughts on “Natural gas price doubled!

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