(MENAFN- Khaleej Times)The UAE and India can collaborate in the energy sector in a big way to take advantage of the opportunities that exist in each other's country.
The public and private sectors of both countries can take up mega projects to set up refineries LNG terminals build oil storages besides building petrochemicals plants in the downstream sector to convert the hydrocarbon feedstock into plastics and other chemicals. Huge potential exists in the renewable energy sector where mega projects can be built here in the country as demand for electricity is growing nine per cent per annum say experts. Both countries enjoy robust bilateral relations which grew stronger with the passage of time in the sphere of trade and investments. Apart from one of the top trading partner the UAE is one of the biggest exporters of crude oil to India. The International Energy Agency forecasts that India will need investments worth nearly $600 billion during the years 2011-2030 across various segments of its hydrocarbon chain to increase its energy supply and improve the infrastructure to enable this. "There are huge opportunities in the energy sector available for both India and the UAE to take advantage of" said Khalid Al Awadhi consultant at Dubai's Hawk Energy Consultants. Asked what he would suggest to the India's Prime Minister Narendra Modi who is visiting the country on August 16 and 17 Al Awadhi said Indian firms who are strong technologically could take a proactive position and setup petrochemical plants fertilizer manufacturing facilities using hydrocarbon feedstock. Also they can take part in setting-up oil refinery project announced by Abu Dhabi's IPIC in Fujairah apart from LNG terminal as well as storage facilities in Fujairah. In India the Indian firms could collaborate with the Emirati firms to setup such projects he said. Robin Mills head of consulting at Dubai-based Manaar Energy Group said: "Forming strong partnerships with leading Indian companies is key. Understanding the particular bureaucracy and community issues of given investment opportunities." He said key areas of interest needed by India can include ports power generation and strategic oil storage. Fuel retail is another area for companies such as Enoc. On the scope of India and the UAE partnership in the hydrocarbon sector he said: "India's hydrocarbon sector has been quite difficult to invest in due to government regulation bureaucracy concerns over tax and the dominance of Indian companies." Also India's particular energy resources are in coal where the UAE does not have large expertise he said. "If the Modi government would make investment easier UAE companies such as Mubadala IPIC and Taqa may show interest" he said. On the possibilities of acquiring oil concessions for exploration and production activities Mills said Indian companies did not show interest in the Adco concession renewal. "There may be opportunities for Indian oil companies to invest in Abu Dhabi but they would have to be much more proactive in approaching the Abu Dhabi authorities and Adnoc" the energy expert said. In the field of solar and wind electric power generation Mills said the Indian solar and wind sector is increasingly important and Masdar in particular may be interested in supporting projects and/or joint research in India. Conversely Indian companies may be bidders for solar projects in the UAE he said. Al Awadhi said Indian firms can introduce their Reverse Osmoses technology to produce water besides installing Photo Voltiac technology to generate solar-power which has great scope here. The utility companies Adwea Sewa Fewa Dewa are ready to welcome with open arms any international water and power project that produces electricity at below 20 fils per kWhs and water at four fils a cubic meter to meet their growing requirements. Al Awadhi estimated that solar energy projects of a total installed capacity of 1000-1500MW would be required in coming few years in the northern emirates after the Dubai Electricity and Water Authority concluded a deal to generate electricity at $0.06 a kWhs last year. The tenth biggest investor in India the UAE's energy firms have made significant investments there. Abu Dhabi National Energy Company Taqa's company called ST-CMS Electric Company operates 250 MW lignite- fired power plant in Neyveli Tamil Nadu. Taqa has plans to expand its power generating capacity by another 250MW at the same site. The likely investment will be around $250 million. -
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