Energy Security is India’s top priority now, which is why the India-Canada Energy Forum was convened jointly by Canada-India Business Council (C-IBC), Alberta School of Business (University of Calgary) and India’s Petrotech, in Calgary July 17-18.
The forum, C-IBC President Peter Sutherland said, brought together leaders and experts from both countries to discuss oil and gas investment, crude oil trading and refining, unconventional gas development and oil and gas sourcing from Canada.
In an exclusive interview to The Indian Diaspora, Sutherland, former Canadian High Commissioner to India, said 34 high profile delegates from oil industry and allied sectors came from India. They included Petrotech President, Rahul Dhir, Director-General Ashok Anand and Managing Director and CEO, Dr AK Baylan.
They also included Akhil Verma, of ONGC Videsh Ltd, Anand Kumnar, Director, Petrotech, Debasis Basu, General Manager (Production) of ONGC and Darshan Hiranandani, Director of Hydrocarbon Energy.
Indian companies represented at the forum included Hydrocarbon Energy; Oil and Natural Gas Commission, Indian Oil Company, Petronet, Indian Oil Corporation and ONGC Videsh Ltd.
From the Canadian side, there were representatives of Industry Canada, Natural Resources Canada, Government of Alberta and several oil companies, Trans Canada, Alberta Petroleum Marketing Commission, Irving Oil, Canadian Society of Unconventional Resources, Canadian Association of Petroleum Producers, etc.
India has now become fourth largest energy consumer in the world, after China, the United States and Russia. “Its need for energy supply continues to climb as a result of the country’s dynamic economic growth and modernization over the past several years,” the US Energy Information Administration says in its June “India” profile.
In the International Outlook 2013, International Energy Agency projects that India and China will “account for about half of global energy demand growth through 2040, with India’s energy demand growing at 2.8% per year.”
It is because of this growing demand, Sutherland says, Indian oil companies have purchased equity stakes in oil and gas fields in many countries. Along the line, Canada is encouraging Indian oil companies to invest in Canadian oil and natural gas and energy sectors, as the investment in Canada is secure, there’s security of the energy sector, of oil and gas sector in Canada.
C-IBC joined hands with the Calgary School of Business and Petrotech of India to organize this forum?
Yes. We were happy that 34 high-profile people came from India. The forum was part of the program of the University of Alberta Business School. And C-IBC and Petrotech co-sponsored the forum. That was the core group. Then there were executives of some Indian companies and several Canadian companies and some individuals as well in the area.
And what was the main objective of organizing this forum?
The main objective was to seek opportunities and dialogues about ongoing energy discussions between India and Canada. We had the first Canada-India Energy Forum in May last year. And then in November at the business forum in India, we had another discussion on energy, and now this was the third round. Our idea is to continue with the dialogue and get more Indian and Canadian companies talking and working together in this field.
This forum was fallout of former Minister of Natural Resources Joe Oliver’s visit to India in January when he extensively spoke about energy security?
As I said, energy security is a very important issue for India. And in Canada, we are looking for new markets. Our market so far is the United States. So, it is a natural fit – we are looking for new markets and India needs so much energy – oil and gas, LNG – expertise in services. We can cooperate.
India is importing 70 per cent of its energy requirements?
India is importing 70 percent of its oil consumption. Oil comes from the Middle East. They want to diversify it.
For Canada to export oil to India, distance becomes a negative factor.
Oil from the East Coast, New Brunswick and Nova Scotia, is more economical than from the West Coast. The first shipment of the Canadian oil to India was in January from the East Coast.
How much oil Canada is exporting to India?
That was the first shipment and so far the only shipment of oil to India. Oil from Alberta will be shipped to the East Coast by pipelines and it could then be exported to India.
What did visitors from India suggest?
There’s very strong potential, oil and natural gas... what they are looking for is to get oil from Alberta to East Coast to West Coast. All of our export of oil so far is to the United States.
You are also encouraging Indian companies, like Oil and Natural Gas Commission to buy energy assets here?
We are encouraging Indian companies to come and invest in Canada in oil and gas sectors. We can expand our relationship in the energy market. Secondly, we want to cooperate with India... We can explore the third (world) markets together. Canadian expertise and technology and together with India, we can explore African and some other markets.
So much is being said about the Modi’s government being pro-business. How optimistic you are that Canada will be able to expand its business relationship with India?
I am very optimistic. It is a majority government and that makes all the difference. There won’t be any hindrance at the political level in the new government being able to pursue its agenda, its own policies. They can take action. It is pro-business. Indian companies thus are assured to internalize their business. I think it all augurs well from the business perspective.
What about the comprehensive Free Trade Agreement?
I hope they will resume the discussions. Mr Modi is being briefed on this file. It is a good time for the Canadian side to take initiative (so) that discussion resumes.
How far the discussions have actually reached?
They had eight rounds of negotiations. Things came to a standstill because of the election.
These negotiations should resume soon.
Source: theindiandiaspora.com/
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