India is looking to raise import of liquefied natural gas (LNG) from Australia but wants the fuel at affordable price to meet the energy needs of the world's fastest-growing economy.
Oil Minister Dharmendra Pradhan on Wednesday met with Australian Minister for Resources Matthew Canavan to discuss bilateral energy cooperation, an official press statement said here.
"Both ministers stressed on the importance of energy and resources in the bilateral relationship and agreed to expand the scope of cooperation given that India offers a large energy market and Australia is rich in natural resources particularly coal and LNG, apart from uranium," it said.
India already imports 1.44 million tonne per annum of LNG from Australia on a long-term contract.
"Given India's major initiatives to move into a gas-based economy, there is significant scope for expanding LNG imports from Australia," the statement said.
India has set a target of raising the share of natural gas in the overall energy basket to 15 per cent by 2030 from the current 6.2 per cent. This shift would cut down the usage of polluting hydrocarbon fuels.
The statement said Pradhan mentioned to the Australian Minister that "Indian consumer is price sensitive, and therefore affordability of LNG imports from Australia will be an important factor in enhancing cooperation in this area."
"Minister Canavan underlined Australia's commitment to expanding its ties with India, and highlighted its position as a reliable partner in meeting India's energy security needs," the statement said. "Pradhan called for greater investment flow from Australia to India and sharing of best practices."
"India being the largest importer of Australian metallurgical coal, a favourable differential pricing mechanism should be worked out," the statement quoted Pradhan as saying. "Pradhan also pointed out that opportunities for collaboration will continue to expand as India's energy mix evolves."
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