Scrapping Iran pipeline will lead to gas shortage: AssochamJanuary 23rd, 2009 - 10:39 pm ICT by IANS
New Delhi, Jan 23 (IANS) India could face a severe gas crisis if the proposed transnational pipelines from Iran and Turkmenistan were scrapped, an industry lobby study said Friday.According to the study by the Associated Chambers of Commerce and Industry (Assocham), the disrupting of gas pipeline talks as a result of heightening tension with Pakistan and geopolitical tensions in the international natural gas market is likely to create an acute shortage of natural gas in the country.
It said the the demand and supply gap for natural gas is likely to more than double from 16 million metric standard cubic meter per day (mmscmd) in 2008-09 to 33 mmscmd in 2011-12. “The demand is likely to be pushed rapidly from the power and fertiliser sectors along with the city gas distribution system,” said the study.
It asserted that scrapping the two proposed natural gas pipelines - Iran-Pakistan-India (IPI) and Turkmenistan-Afghanistan-Pakistan-India - would aggravate the situation.
The long-term loss on the supply side of natural gas could range between 4 to 5 billion cubic feet per day (bcfd) if India opts to de-link itself from these projects.
“India needs to ensure smooth natural gas supply to its industrial units in the power and fertiliser sector which would supplement the rising demand from the primary and secondary sector to keep the Indian economy growing at a robust pace,” said the study.