Trans-Asia Energy Grid? (Mini-Post)

Sorry for the very late posting, work has been extra busy with the coming holidays. I am working on 2-3 articles, but for now here is an interesting development via AsiaTimes’s “The foundations for an Asian oil and gas grid“:

Stung by the rising international price of oil and domestic shortages coupled with high requirements of a growing economy, India has revived a plan for an oil and gas grid for the Asian continent.

The grid is part of a two-fold strategy by the two top Asian oil guzzlers, China and India, to ensure reliable delivery networks and energy security. The other element involves acquiring stakes in production and exploration projects for which New Delhi and Beijing continue to cooperate as well as compete.

The emphasis on the grid comes in wake of reports that India and China, the most aggressive shoppers for oil and gas assets in the world, are coming together to put in a joint bid. The China National Petroleum Corporation (CNPC) and the Oil & Natural Gas Corporation (ONGC), two of the most high-profile emerging global oil companies in the past year, could jointly bid for Petro-Canada’s $1-billion oil and gas fields in Syria. Both India and China feel the strategic need to diversify their energy sources from the current dependence on West Asia.

It will take years before this project turns into fruition if it ever gets there, but such a bold statement alone is a testament of new realities that the Bush Administration nor any political leader in the U.S. have began to address.

More on this later…


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3 responses to “Trans-Asia Energy Grid? (Mini-Post)”

  1. IJ

    The new realities are being reported at a seminar series in John Hopkins University, sponsored by the US navy and the Secretary of Defense’s force transformation unit. A wider appreciation is becoming possible.

    One speaker from the Philippines, BG Corpus, reckoned that Asia’s attitude to the US was soured last year. After China reiterated that Taiwan would remain part of its sovereign territory, the US sent seven aircraft carrier battle groups to the area. It was all very worrying.

    In his address, Corpus in tape 3 mentions recent joint military manoeuvres involving China and Russia. Other security alliances springing up include the Shanghai Cooperation Organisation, and the BRICS (Brazil, Russia, India, China and South Africa – with observers Iran and Venezuela). BRICS is reported to have 75% of the world’s population and 80% of the natural resources.

    It was once thought that the UN should have a security network around the world based on NATO and other regional alliances. Perhaps it’s time to try this.

  2. IJ

    Still on new realities, regional alliances will come under strain from economic patriotism. The Economist tells us of the growing problem.

  3. IJ

    The link doesn’t connect. Try again.

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