India needs Iranian, Turkmen gas: report

January 25, 2009 - 0:0

Energy shortages in India may reach severe levels if prospects for gas pipelines from Iran and Turkmenistan fall victim to diplomatic relations, New Delhi say.

India says it needs the proposed Iran-Pakistan-India and Turkmenistan-Afghanistan-Pakistan-India pipelines, as domestic production targets are expected to fall short in 2009, a report by the Associated Chambers of Commerce and Industry of India says.
“Scrapping the two proposed international gas pipelines involving Pakistan could aggravate the already grim gas supplies,” the organization said in a report. It also said India would face a gas shortage of 45 billion cubic feet per day if both projects were scrapped.
Domestic production of natural gas for India accounts for only 60 percent of its total demand. The report said that as the economy and network of gas distribution centers expand, production shortfalls are expected to grow more severe.
“India needs to ensure smooth natural gas supply to its industrial units in the power and fertilizer sector, which would supplement the rising demand from the primary and secondary sector to keep the Indian economy growing at a robust pace,” the report said.
Relations between Islamabad and New Delhi reached a low point in the wake of November attacks in Mumbai originating in Pakistan. Turkmenistan, for its part, may face difficulties supplying TAPI due to commitments to existing pipeline arteries.