Natural gas due to its unique features such as being the most environment - friendly fuel and its suitability in the terms of price is able to play an important role for promoting sustainable economic development.
Iran as the world’s second largest holder of natural gas owns 27 trillion cubic meters (15.8 of the world’s reserves). The Iranian government by deciding to increase natural gas production (especially in South Pars field) can completely respond growing domestic demand. On the other hand it can allocate a huge amount of this production for exportation either in the form of LNG or via pipeline.
There is a lot of proposal for the Iran’s natural gas export to the countries such as: Ukraine, Europe, India, Pakistan, Armenia, Georgia, Turkey and etc. about whom Iran should decide by considering all relevant economic and political consequent which Iran’s natural gas export to them may have for Iran.
The Indian economy continues to show impressive economic growth. The country’s real gross domestic product (GDP) grew at an impressive rate of 9.1 percent during the first half of fiscal 2006 (April – September 2006), after growing by 8.7 percent in fiscal 2005. Together with the country’s impressive growth, India has also become a significant consumer of energy resources.
According to International Energy Agency (IEA) estimates, India was the fifth largest consumer of oil in the world during 2006. Since India is the second largest developing country (after china) in the world, its natural gas consumption will rapidly increase in near future. Thereupon, Indian natural gas consumption with currently growth rate of 5.1%, will reach 2.8 trillion cubic feet in 2025. So the necessity of importing natural gas to meet India’s energy demand is prima facie.
Furthermore, Pakistan as a crowded country in the region, with the growth rate of 7.6%, is the third largest user of CNG in the world after Argentina and Brazil.
Since the energy demand in this country is quickly increase, the government of Pakistan has considered the natural gas as a most appropriate form of energy to meet
its domestic demand. Although the current natural gas production in the Pakistan has been capable of responding its domestic demand, but due to the increasing of Pakistan’s natural gas consumption in near future, the importing of natural gas will be inevitable.
To read the full article: Eghtesad and Energy
By: Ali Emami Meibodi* Mohammad Nooralah**
somayeh askari dariyooni ***
* PhD. Assistant prof. Department of economics, university of
** MA. Area studies of ECO, university of Allameh Tabatabai
*** AS, international marketing, NIGC, Expert of Foreign Sourcing