Pakistan to benefit from South Asian energy ring

[Pk_Thunder]

Pakistan to benefit from South Asian energy ring ​

DHAKA, Feb 2 (APP) Pakistan and Bangladesh are poised to benefit immensely from Regional Energy Ring (RER) likely to be given go‑ahead for transnational transmission of gas and power as SAARC Energy Ministers’ meeting in Colombo has approved a proposal to this effect. Bangladesh Energy Secretary Mohammad Mohsin, who attended the meeting recently said, the proposal on the issue was discussed merely a concept for many years.

“But, this is first time, a specific proposal was approved by the ministerial meeting of the South Asian Association for Regional Cooperation (SAARC),” he said.

Under the proposed RER, electricity and gas will be traded among the SAARC nations.

The Energy Secretary said Bangladesh’s import of electricity from Nepal and Bhutan through Indian territory would be covered by the regional grid.

Likewise, India’s import of gas from Myanmar through Bangladesh territory under the tri‑nation gas‑pipeline project may come under the RER. Pakistan will also be entitled to huge benefits accruing from such an energy ring.

Energy Ministry sources said Bangladesh, Nepal and Bhutan have been pursuing the SAARC for implementing such a scheme like RER for more than 15 years to utilize their energy potentials for trading among themselves.

But, because of Indian opposition, the scheme could not materialize as the neighboring country preferred bilateral negotiations for such trade, they said.

The Colombo SAARC Energy Ministers’ meeting also accepted a proposal on regional energy trade, based on a study conducted by the Asian Development Bank (ADB).

But a decision was taken in the meeting to form a technical working group to examine the proposal as to how such trade could take place among the SAARC nations.

They will also evolve a common template on the technical and commercial aspects of the electricity trade.

The meeting discussed the issue of common energy‑ pricing formula, joint import of crude oil, energy conservation and efficiency as well.

 

[Omar1984]

South Asian Nations Approve 'Energy Ring' Launching

Wednesday, 02.04.2009, 06:12pm (GMT)

The South Asian countries have approved the introduction of an 'energy ring' to facilitate inter-country links for exchanging natural gas, electricity and transfer of technology, official sources said.

The South Asian Association for Regional Cooperation (SAARC) countries consisting Afghanistan, Bangladesh, India, the Maldives, Myanmar, Nepal, Pakistan and Sri Lanka reached this consensus during the recently held SAARC Energy Ministers' meeting in Colombo.

Bangladesh, however, pointed out the necessity for broadening the working capacity of the energy ring through inclusion of coal and exchange of ideas under its purview during the two-day meeting on January 28-29.

"We are for resolving regional energy crisis through mutual cooperation," Bangladesh’s State Minister for Foreign Affairs Dr Hasan Mahmud told.

Bangladesh will work unitedly and extend all out cooperation for energy cooperation in the energy-starved South Asian region, said Dr Mahmud, who led the Bangladesh delegation during the meeting.

"The energy ring will ensure equitable benefit to the SAARC member countries through regional energy trades," Energy Secretary Mohammad Mohsin said.

The issues like setting up of regional electricity grid, inter-country gas pipeline, energy pricing, energy conservation and efficiency were also among the subjects discussed during the meeting, said Mr Mohsin, who attended the Colombo meeting as a top government bureaucrat.

The methodologies of regional energy trade were also discussed during the meeting. It referred the issue to be discussed further by the SAARC Working Group which would meet Bhutan in April 2009.

A South Asian taskforce was also constituted during the Colombo meet to evolve a common template on technical and commercial aspects of the electricity grid interconnections.

Regarding energy pricing a regional seminar will be held on the fourth quarter of 2009 in Pakistan.

The meeting noted with satisfaction the progresses of the SAARC member countries towards energy efficiency and its conservations.

South Asia has one-fifth of the world's population but has among the lowest per capita incomes in the world.

Notwithstanding the rapid growth in energy demand, the region continues to average among the lowest levels of per capita energy.

It has reserves of 5 billion barrels of oil, and natural gas reserves of around 55 trillion cubic feet. The region has 86 billion tonnes of coal.

A recent World Bank (WB) observed that widespread cross border gas and electricity trade could provide significant contribution to meeting the regional demand, which is expected to grow annually in the range of 6.6 to 11.5 percent during the next 15 to 20 years in the South Asian region.

The report identified the regional trade as the main challenge, which it believes can play an important role in addressing the problem of energy needs and shortage in the region.

South Asia lags most other regions in terms of trading in of electricity and gas.

Energy endowments differ among the South Asian countries, but energy trade in the region is lows, the report pointed out.

The national energy systems-gas and electricity networks-in the South Asian countries are largely isolated from each other.

Currently only India, Bhutan, and Nepal trade electricity.

There are no gas pipelines crossing the national borders, whether within South Asia or between south Asia and its neighbours, the WB report noted.

Energy Bangla - South Asian Nations Approve 'Energy Ring' Launching