India's Quest for Energy Security
India is the fastest growing economy,energy plays an important role in India's national security.Energy security has become one of the key determinants of India's foreign policy.India's thirst for oil is rooted in economic imperatives.The emergence of India as a major player in foreign energy ventures will have a profound impact on world geopolitics.India is highly dependent on oil imports.In recent years India has diverisified its energy procurement to African countries.India's 20% oil imports from Africa.India has increased its purchase of oil and gas from a range of African countries.The biggest suppliers of petroleum products to India from the Africa continent are Nigeria,South Africa,Angola,Egypt,Algeria and Morocco.India has reduced its dependence on Gulf countries to bring some balance in its acquisition portfolio.Within Africa,India's overall economic relationship is changing.The energy mix in India comprises both primary which occur in nature{coal,crude oil,natural gas,fuel wood} and secondary sources,which are derived from primary sources {coal,gas,coke,petroleum products and charcoal,electricity{ thermal,hydro,nuclear}.India's energy basket has a mix of all the resources available including renewable.
India's energy security has both internal and external challenges.India has limited energy resources domestically and at the external front.As one of the largest consumers and importers of hydrocarbons,a priority for India is building and ties with oil and gas rich countries.Energy plays a role not only in India's socio-economic and development goals,but also in its aim to emerge as a major regional,and eventually global,economic power.India's traditional energy policy was essentially oil-based and west asian centric.India has entered into cooperative relationships with several oil-producing countries in Africa and the Middle East.Energy security is a national imperative for India.A strong partnership with Africa must be viewed as essential to securing India's energy needs.Energy security has influenced India's moves into African hydrocarbon sector.This significance of ties between India and Africa has been gaining greater strategic prominence due to India's interest in the energy sector region.The growing demand of India for energy cannot be secured without diversification and Africa.Apart from Iran,India can even consider doing special arrangements with oil producing countries of Africa.For India it is important to reduce dependence on Middle East for oil and for the African countries it was important to find more buyers to get the best price for their products.This growing dependence on Africa will be a key dynamic that will shape trade and investments with India.
India-Africa ties could be seen in the light of growing Indian demands for energy.In 2010,Africa accounted for 20.6% of India's total crude oil imports.ONGC Videsh has been the most active public sector company in Africa.The company has in total five exploration projects in Africa,one in Libya,two in Nigeria,one in Egypt,and one in joint development zone,an area of overlapping maritime boundary claims between Nigeria and Sao Tome located in Gulf of Guinea and two producing projects in Sudan.Nuclear energy becoming an important source in India's potential energy mix,and with its own comparatively modest reserves,India has been talking uranium purchase from various African countries.Africa emerging as an important supplier of uranium,many countries of the continent have shown interest in doing business with India.These include South Africa only African member of the Nuclear Suppliers Group-NSG and Namiibia,which produced 4,000 tonnes of uranium in 2012.India has signed a uranium agreement with Namibia as well as a protocol in 2011 for supplying the mineral.Other uranium rich African countries keen to cooperate with India include Tanzania,Malawi,Mali and Niger.Uganda was keen on mutually beneficial cooperation with India to develop energy resources. Energy security may be the biggest challenge for Indian policy makers for coming years.India's energy consumption has started to rise rapidly in recent years,making India one of largest consumers in Asia today.India's growing energy needs have pushed it towards energy cooperation with African countries.India has also increased its ties with African countries in procuring uranium for nuclear projects.
Anil Kumar Upadhyaya
15 of December 2014
