Issues Related to India’s Energy Trading with Central Asian Countries

AbstractIndia, with its rapidly increasing energy demand and stagnating domestic oil reserves offers a large potential market for the oil and gas reserves of the Central Asian countries. This paper discusses the various issues, which need to be resolved before India can venture into any long-term energy import agreement with the countries of Central Asia. These include factors related to geopolitical stability, geographical inaccessibility and underdeveloped international as well as domestic gas markets. Additionally, detailed cost benefit comparison of transportation routes is required along with evaluation of transportation options of oil and gas through pipelines vis-à-vis road.