New Delhi, August 3 - Neftegaz.RU. India is planning to set up a liquefied natural gas (LNG) import terminal in Myanmar as it looks to expand energy diplomacy in its neighbourhood, Oil Minister Dharmendra Pradhan said today.
The terminal to import super-cooled natural gas will be in addition to the similar facilities planned by Indian firms in Bangladesh and Sri Lanka as part of larger plan of energy connectivity in the South Asian neighbourhood, he said.
Pradhan said Numaligarh Refinery in Assam is exploring supply of diesel to Myanmar and is looking at options to build fuel storage and distribution sector in that country. Indian Oil Corp (IOC) is also working with Myanmar companies in setting up LPG storage facilities and Petronet LNG is working on setting up an LNG terminal there, he said.
The key to developing such a community lies in identifying complementary conditions and the combination of inter related production characteristics among energy supply and demand sectors of these countries, he said. Pradhan called for reform and restructuring of the energy sector in each of these nations in such a way that the bloc becomes more competitive and efficient.
The national energy systems - gas and electricity networks - in the South Asian countries are largely isolated from each other. Currently only India, Bhutan and Nepal trade electricity. In addition, India supplies some amount of power to Bangladesh.
Demand for electricity in South Asia and particularly in Bangladesh, Bhutan, India and Nepal is growing rapidly which call for cooperation and trade that should eventually create one of the world's largest integrated energy market, he added.