Britain and Myanmar are two very different locations. But when it comes to our strategic losses, they have more than a few similarities. Britain is home to Imperial Energy Corp. Plc., a firm with large reserves of crude oil in Russia. Its acquisition by ONGC Videsh Ltd made headlines sometime ago. That deal’s closure is under a cloud at the moment as questions are being raised about the quality of these reserves.
In Myanmar, China stole a natural gas deal from right under our noses, literally. Last week, it signed a 30-year natural gas supply agreement from a field in which India has a 25.5% stake.
These deals demonstrate the lackadaisical manner in which we approach energy security. With hardly any hydrocarbons, India is in no position to take it easy.
Yet, that is what we are doing as the fate of these deals shows. Oil and natural gas are commodities that are locked in long-term deals and are prohibitive to buy in spot markets. But that is what we will be forced to do if we continue with our present approach. This has the potential to derail our long-term economic growth.