Page 5 - AsianOil Week 04 2021

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India forges closer

ties with IEA

The Indian government has signed a
Strategic Partnership Framework with the IEA

COMMENTARY INDIA’S concerns over energy security amid Supply concerns
international oil price volatility have prompted Indian Minister of Petroleum and Natural Gas
the country to forge closer ties with the Par- Dharmendra Pradhan has denounced the Saudi
WHAT: is-headquartered International Energy Agency decision to cut 1mn barrels per day (bpd) of its
The two sides will (IEA). own crude production in February and March
collaborate on energy Just a week after remonstrating over Saudi even as other members failed to plug the gap.
security and clean energy Arabia’s decision this month to cut oil produc- Pradhan described the move as a “contra-
transitions. tion, the Indian government has signed a Strate- diction” in talks with OPEC Secretary-Gen-
gic Partnership Framework with the IEA, setting eral Mohammad Barkindo during the Atlantic
WHY: the country on a path that could see it become a Council on January 19. The minister said the
India is deeply concerned member of the group. policy was “creating confusion for the con-
by its exposure to the The Indian Ministry of Power’s Secretary, suming countries”, before adding that OPEC’s
international energy Sanjiv Nandan Sahai, described the signing decision might encourage India and other
market. as “historic” and said his government would buyers to embrace alternative energy sources
work with the IEA on key areas, including more readily.
WHAT NEXT: energy security, clean energy transitions and Barkindo, however, sought to reassure
The partnership could “co-operation across the full spectrum of IEA the minister that OPEC bore “the interest of
help India hone its activities”. consuming countries in mind” when mak-
long-term energy security The agreement is the latest sign that India, ing its decisions.
strategy. the world’s third-largest energy consumer, has Given that India’s oil imports have regained
grown tired of leaving its energy security inter- momentum, hitting a nearly three-year high
ests in the hands of OPEC+. in December 2020, Pradhan could be forgiven

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