Israel, India to Discuss Gas Ventures

Two months after Israeli Finance Minister Yuval Steinitz first proposed gas exports to India, Tel Aviv is sending Minister of National Infrastructure Uzi Landau, who also heads Energy & Water Resources, to discuss the prospect of Indian firms participating in the gas ventures.

India's Ministry of External Affairs has backed the meeting between Landau and Petroleum & Natural Gas Minister S Jaipal Reddy, with an advisory to ONGC Videsh Ltd to be ready to reciprocate. Landau’s visit is slated February 20-24 and he will meet Reddy on February 21.

Israel’s recent gas finds in the Mediterranean Sea are the only issue flagged for the meeting. The two many announce a joint team to pursue the feasibility of the offer.

An OVL official said the Israeli offer “seemed” primarily for equity in the discovered gas fields as the option to invest in exploration was always open to any company. “We have said that we are ready to participate,” he said.

Landau’s visit takes forward Steinitz’s offer to his Indian equal, Pranab Mukherjee, on December 14. On Thursday, Israeli Prime Minister Benjamin Netanyahu had said Cyprus and Israel were studying the possibility of a common pipeline that could help export gas to Europe and Asia.

India, which buys most of its gas from Qatar and Oman, has been seeking alternative sources after Iran trashed an LNG deal following New Delhi’s vote against its nuclear programme in the IAEA (International Atomic Energy Agency). The peace pipeline from Iran to India via Pakistan has also got buried on price and security concerns.

New Delhi, which is defying the US and EU sanctions to court Tehran, buys Iranian sour crude which could be easily supplemented by other Middle East grades but is desperately in need of natural gas. Israel is suddenly flush with natural gas with a third find announced this month.

 Source: Indian Express