This is an archived blog post from The Acorn.
Indrani Bagchi reports on an exciting new development. Ali Babacan, Turkey’s foreign minister, has proposed a plan to deliver Central Asian oil and gas through a combination of supertankers and overland pipelines in Turkey and Israel.
(Oil) from Central Asian countries like Kazakhstan, Azerbaijan and even Georgia be transported through Turkey’s massive pipeline infrastructure to Ceyhan port. Traveling through the Mediterranean Sea in super tankers, the oil will then be fed into Israel’s Ashkelon-Eilat pipeline, while super tankers pick it off from the Gulf of Aqaba port of Eilat and back again on super tankers to India.
Turkish officials pointed out that none of the pipelines will have to be built. They are already in existence. The Ashkelon-Eilat pipeline is a functioning one, as is the Baku-Tbilisi-Ceyhan pipeline which started work in 2006. Tel Aviv and Ankara have announced plans to carry water, electricity, natural gas and oil to Israel by way of a proposed Ceyhan-Ashkelon-Eilat passage. So, its not difficult to imagine gas coming through this passage, though this will need liquefaction and gasification terminals, which are a longer term investment. [TOI]The supply chain involves multiple links, but is likely to be less risky compared to overland pipelines through Afghanistan and Pakistan. (The headline writers at the Times have been a little too excited—this project need not be an ‘alternative’ to buying gas from Iran. And a pipeline is not the only way to buy Iranian gas.)
Now, promoters of this Central Asia-Turkey-Israel project are bound to claim that it will lead to cheaper supplies—be that as it may, what is important is that having access to fuel supplies via this route is consistent with a strategy of diversification of supply sources. As advocated by this blog, India’s energy security lies in competitive markets.
India should take up Turkey’s offer and commence exploratory negotiations forthwith. And while this deal is worked out, the central government should lose no time in announcing a policy of investing in several oil & gas processing terminals along its seaboards. For Turkey’s proposal shows that there are more such projects in the pipeline.
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