South Asian Oil & Gas Regulators and Industry Deliberate Interconnected Gas Grids

During the India Energy Week (IEW), oil and gas regulators from South and Southeast Asia convened to explore strategies for accelerating the transition to clean energy through interconnected gas grids. The inaugural International Conference of Petroleum and Natural Gas Regulators, organized by the Petroleum and Natural Gas Regulatory Board (PNGRB), served as a platform for these discussions.

Participating in the conference were prominent National Energy Regulatory Authorities from countries including Bangladesh, Indonesia, Malaysia, Sri Lanka, and Thailand, alongside international industry leaders. Throughout the deliberations, industry representatives emphasized the importance of establishing a regional clean energy agenda via interconnected gas and electricity grids across South and Southeast Asian nations.

The discussions focused on enhancing energy security while expediting the shift towards cleaner energy sources such as renewable energy and gas. Officials highlighted ongoing efforts to promote electricity trading and feasibility studies for developing interconnected power grids between ASEAN, India, the UAE, and Saudi Arabia.

Given that South Asia imports nearly two-thirds of its energy requirements, the volatility in oil and gas prices, particularly since 2022, has significant implications for the region. Currently, cross-border electricity trade is on the rise, primarily driven by India's engagement with Nepal, Bhutan, and Bangladesh.

A study conducted by the Integrated Research and Action for Development (IRADe) under the USAID's South Asia Regional Initiative for Energy Integration (SARI/EI) in May 2021 assessed the potential of gas/LNG for regional energy cooperation in the BBINS (Bangladesh, Bhutan, India, Nepal, Sri Lanka) Region. The study projected substantial fiscal benefits from intra-regional trade, estimating annual trade benefits exceeding $1.2 billion by 2025, rising to $1.9 billion per annum by 2030, and reaching approximately $3.6 billion annually by 2040.

HBL