OPERATIONS

Australians curry favour with Indians

AUSTRALIAN and Indian government officials, industry and academia met in the City of Brisbane Aus...

Australians curry favour with Indians

The meeting built on momentum for increased engagement generated by recent meetings between Australia's and India's Prime Ministers.

India is a major Asian gas buyer, most recently paying a premium for spot LNG cargoes, and is particularly interested in purchasing Australian uranium and, from some reports, coal.

The JWG meeting and workshops, provided the opportunity to discuss recent resources and energy policy developments and reforms.

Delegates also discussed opportunities and challenges in mining; petroleum and gas; power; and new and renewable energy, including challenges in skills, science and innovation and infrastructure.

Department of Industry and Science associate secretary John Ryan led the Australian delegation, while the Indian delegation, led by Joint Secretary for the Ministry of Mines Arun Kumar, included five Indian government ministries responsible for coal, petroleum and natural gas, mines, power and new and renewable energy and industry.

The JWG undertakes collaborative activities under ongoing work programs that centre on promoting bilateral trade and investment, as well as increasing research and technical collaboration in the resources and energy sectors. The work programs were updated at the meeting.

Research agreements and memoranda of understanding between Australia and India were signed at the meeting, including MoUs between the CSIRO and National Mining Development Corporation for research agreement on beneficiation.

The Indian School of Mines signed further MoUs with CSIRO, the Newcastle Institute for Energy and Resources and Curtin University.

The JWG complements discussions between India and Australia that are likely to result in a free trade agreement being signed before year's end that will cover goods, services and investment opportunities.

The talks for a comprehensive economic cooperation agreement between India and Australia were started in 2011.

Already Australia has agreed to send Australian uranium for use in India's 20 small nuclear reactors, which generate about 2% of India's power needs, although the Indian government hopes to increase its generating capacity from 4780 megawatts to 63,000MW by 2032.

India is the first customer to buy Australian uranium without being a signatory to the nuclear non-proliferation treaty.

Toro Energy has environmental approvals for a uranium project in Western Australia and is in initial talks with India companies for investment.

The Australian government last year approved a controversial $16.5 billion coal and rail project in the province of Queensland by Indian firm Adani Mining, controlled by billionaire Gautam Adani that could develop the Galilee Basin.

In terms of oil and gas, with China now a maturing market, companies such as Woodside Petroleum considered India a tough nut to crack, but a land of opportunity for LNG exporters.

India has historically been fed by domestic supply, but that is in decline while the economy is growing rapidly.

The Indian government has set a number of growth targets, with only 65% of people having access to a reliable power supply.

The Modi Government wants to increase that to more than 90% of a more than 1 billion-person population, so that is a substantial marketplace

The Indian market is similar to Europe, not one single gestalt, but numerous states with different agendas. Some of those states are very progressive and keen to purchase gas from reliable buyers on long-term contracts.

The opportunity is immense. Today India takes about 13 million tonnes per annum of LNG, compared to 90MMtpa purchased by Japan, which has a fraction of the population.

In terms of resources, there are a number of junior explorers that have tried their hand at India, such as NSL Consolidated, many without much luck, but the opportunities are still there for the taking, and Indian companies are increasingly investing in Australia's natural resources, such as Bharat PetroResources in the Perth Basin shale plays.

About 75% of Australian exports to India consisted of copper and gold.

TOPICS:

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

editions

ENB CCS Report 2024

ENB’s CCS Report 2024 finds that CCS could be the much-needed magic bullet for Australia’s decarbonisation drive

editions

ENB Cost Report 2023

ENB’s latest Cost Report findings provide optimism as investments in oil and gas, as well as new energy rise.

editions

ENB Future of Energy Report 2023

ENB’s inaugural Future of Energy Report details the industry outlook on the medium-to-long-term future for the sector in the Asia Pacific region.

editions

ENB Cost Report 2021

This industry-wide report aims to understand current cost levels across the energy industry