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India looks to Gulf to lessen dependence on Iranian oil

Last Updated 04 March 2012, 20:07 IST

India is set to play host to the top leaders of Qatar, Oman and the United Arab Emirates (UAE)in the coming months, as it plans to lessen its dependence on crude import from Iran and to boost its energy partnership with the Gulf countries.

Saudi Arabia’s assistant petroleum minister Prince Abdul Aziz Bin Salman Bin Abdulaziz last month visited New Delhi and conveyed Riyadh’s readiness to supply additional crude to India from the next financial year itself. New Delhi is now preparing to receive Emir of Qatar, Sheikh Hamad bin Khalifa Al Thani, who is likely to be followed by top leaders of Oman and the UAE.

Sources in New Delhi said the Emir of Qatar might visit India within a couple of months and the dates were being worked out.

Qatar has a proven oil reserve of 25.38 billion barrels and a proven gas reserve of 25,201 billion cubic metres. India imported four million tonnes of crude oil from Qatar last year. New Delhi also has a long-term agreement with Doha for supply of 7.5 million tonnes of liquefied natural gas from Qatar to LNG Terminal at Dahej in Gujarat every year and the first shipment took place in 2004.

New Delhi expects Sheikh Hamad to make commitments to raise Qatar’s supply of both natural gas and crude oil to India during his visit. Both sides hope to resolve the issue of pricing for supply of additional quantity of natural gas. Besides, according to the sources, New Delhi and Doha also expect progress in talks between Qatar’s state-run Rasgas and Petronet for supply of 2.5 million tonnes a year to Kerala for a new power project in Kochi.

The 2184 MW Dhabol project in Maharashtra is also expected to be fed by natural gas from Qatar. Though India does not want to be seen publicly succumbing to growing US pressure to lessen dependence on crude from Iran, New Delhi made it clear that the country’s refiners would independently take commercial decisions about sources and quantum of oil imports.

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(Published 04 March 2012, 20:07 IST)

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