China is no threat to
India in terms of securing its energy supplies even though the two compete on
the world stage for energy sources, oil minister Dharmendra
Pradhan has said.
“China has its own strategy, India has its own strategy. I don’t feel any threat
from anybody,” Pradhan said at India Economic Conclave. He added that all key producers in the world need an assured market
for their supplies, and India offers that big and expanding market.
China and India are the second and the third largest oil consumers in the world
and are forecast to account for the biggest share of incremental energy demand
for the next 25 years. Since mid-2014 when global oil prices fell, heavy
consumers like India and China have gained more bargaining power with respect
to producers who are seeking to secure consumers for their supplies.
For energy security, India and China have bought stakes in oil and gas fields
across the globe in the past two decades, competing closely with each other for
“China may have deep pocket, but we have big credibility,” Pradhan said on
India’s way of dealing with countries that offer potential hydrocarbon
resources in which Indian firms could invest.
China and India have not just been competitors but also coinvestors in some
energy assets abroad. In the recent years, the partnership has expanded
to renewable energy as China has
emerged as a key supplier of solar panels to India. By
switching to renewables, raising energy efficiency, and boosting local
production of crude oil, India wants to reduce
its oil import dependence to 67% by 2022 from about 80% today.