India to maintain oil import from Iran at current level

New Delhi: After relegating oil imports from Iran, India today said it plans to keep shipments from the West-Asian nation, which is facing the US sanctions, at around current levels.

“We are neither trying to reduce nor increase imports from Iran,” Petroleum Minister S Jaipal Reddy said at Petrotech 2012 Conference in New Delhi.

Iran which till 2010-11 was India’s second biggest oil supplier after Saudi Arabia, has now been relegated to fourth place. Saudi Arabia supplied 32.63 million tonnes of crude in 2011-12 while Iraq took the second spot with 24.51 million tonnes. Kuwait supplied 17.67 million tonnes while Iran sold 17.10 million tonnes.[caption id=“attachment_491470” align=“alignleft” width=“380”] Petroleum Minister, S Jaipal Reddy. Image courtesy PIB[/caption]

“I am absolutely clear that there is no problem in getting supplies,” Reddy said.

For the current year, imports from Iran are estimated at 15-15.5 million tonnes.

Listing out concerns regarding energy security for India, Reddy said,“For India, energy security is a truly central issue. India is likely to emerge as one of the top 3rd or 4th importers in the world, of all energy forms–oil, coal, gas and uranium.”

The global demand for energy, he said, grew at 1.3 percent per annum during 1980-2000. This growth rate increased to 1.6 percent per annum during 2000-2010. “Going forward, an energy demand growth rate of over 1.5 percent per annum is expected to sustain in the near future.”

India and China alone will contribute to around 40 percent of the global growth in energy demand during 2010 to 2050, he said adding volatility of energy prices have been increasing, adding to the challenge of financing and planning the massive energy investments required to provide energy.

“For instance, energy demand from coal in India is likely to constitute half of our total energy demand, as a result of which India?s share in global coal consumption will double by 2050,” he said.

“The use of gas for power is likely to be constrained by availability of domestic gas, and the price of imported gas, unless the Asian LNG prices delink from crude, or we are able to secure large, reliable supplies of gas from overseas.”

Reddy said securing energy needs for India and other developing countries would require tremendous efforts in the area of energy efficiency and demand side management.

PTI