Business & Economy

India calls for global initiatives for mutual energy security

NetIndian News Network

New Delhi, June 18, 2009

Minister of State for Petroleum and Natural Gas Jitin Prasada today said India supported global initiatives that strengthened mutual energy security by promoting a truly open, competitive and globally integrated energy market and which ensured the long-term interest of both the producers and consumers.
"India is for revamping the architecture of the global energy by encouraging a participatory model based on diversification of energy sources, stability of energy supplies, security of energy transportation and creation of new energy infrastructure and its protection," he said at the opening session of the first Asia Europe Ministers (ASEM) conference on Energy Security in Brussels.
The minister said the functioning of international oil and gas markets in a transparent manner was most important from India’s point of view. He said the recent trend of rising oil prices was again threatening a renewed volatility, which is neither in the interest of producing nor of consuming countries.
"We are confident that an appropriate regulatory mechanism will be put in place to check unhealthy speculative practices and bring about transparency to crude oil market," he said.
He said the time was ripe for out-of-the-box solutions which could revitalise the global energy scenario. He noted that India had, in the past, advocated adoption of a price band mechanism to obviate price volatility.
Mr Prasada said India had also suggested that international organisations like the World Bank could facilitate financing of energy transport infrastructure like oil and gas pipelines to overcome bilateral or regional complexities.
He also recalled that India had proposed that suppliers and buyers should enter into long-term sale and purchase agreements not only for the purpose of supplies but also for prices to bring stability in oil prices.
Mr Prasada said, as the main energy consumption area in the world, the ASEM platform can help to provide a predictable and assured demand security to meet the oil suppliers’ concerns, thus providing a long-term stable structure of energy production and consumption.
"Energy cooperation among ASEM members will enhance energy consumer-producer dialogue and coordination, and restrain speculation, thus promoting long-term supply-demand equilibrium and price stability of energy," he said.
"We feel that ASEM members could actively pursue synergy in energy through development and utilization of clean, renewable and new energy sources where the developed members of ASEM have advantages in know-how, R&D, technology and capital, while developing members have strong market demand. Therefore, cooperation amongst ASEM members in these fields would have to be based on mutually beneficial business models which support market access through technology transfers and jointly pursuing commercially viable R&D," he said.
On the sideline of the conference, Shri Jitin Prasada had bilateral talks with Dr. Do Huu-hao, Vice Minister, Ministry of Industry and Trade, Vietnam and Mr. P.D. Hazi Mohammad Bin Hazi Daud, Minister of Energy, Brunei about issues related to oil and gas, an official statement issued here today added.