The Hindu Business Line : `India-Iran energy deals won't affect US ties'

New Delhi March 20 The US Energy Secretary, Mr Samuel W. Bodman, said on Tuesday that energy deals between India and Iran would not affect bilateral ties between the US and India.

Speaking to newspersons, he said, "The relations with Iran does not hamper India's stand with the US".

India is negotiating with Iran for importing five million tonnes of liquefied natural gas (LNG) a year. Besides, Iran and India, along with Pakistan, also propose to jointly build a natural gas pipeline for transporting gas from Iran. Mr Bodman is in New Delhi on a three-day official visit.

Mr Bodman met the Petroleum Minister, Mr Murli Deora. After the meeting, Mr Deora said the US is not opposed to the gas-pipeline project between India, Pakistan and Iran.

Discussions were also held on the ongoing India-US energy dialogue, Mr Deora said. The Petroleum Ministry has ongoing memorandums of understanding and agreements with the US Government. The discussions reviewed the progress under the MoUs, including areas of safety in oil and gas, co-operation in strategic storages, infrastructure, research and development, gas hydrates and information exchange.

Bio-fuels

The Petroleum Minister said that India is keen to learn from the American experience in bio-diesel and bio-fuels as well as in the development of hydrogen as a fuel for the future. Asked whether the US companies have expressed keenness to participate in the forthcoming New Exploration Licensing Policy (NELP) rounds, Mr Deora said the issue was discussed at the meeting. Mr Deora said that the need for greater participation of American oil majors was emphasised. "Both sides expressed satisfaction with the progress made and agreed to hasten progress through the joint working group mechanism already institutionalised," he said.

Earlier in the day, Mr Bodman met the Planning Commission, Deputy Chairman, Mr Montek Singh Ahluwalia, where the two reviewed efforts of the various working groups. In his address to the India Inc organised by FICCI, Mr Bodman said, ``the civil nuclear agreement currently under negotiation is good for India... is good for the US... is good for our mutual energy security... and is good for global non-proliferation system.''

He said the agreement should not be viewed ``as a threat, in any way to India's sovereignty or its nuclear programme, but instead should be considered as a major opportunity." He added that India, the US and other international partners ``will soon begin construction on International Thermonuclear Experimental Reactor or ITER'' that would validate the fusion process potential to generate power and unlock a clean and virtually limitless source of energy.

On the issue of energy security, Mr Bodman underlined the need for taking collective steps to protect and modernise critical energy infrastructure, safeguard sea-lanes and facilitate multiple delivery routes.

OPEC supplies

Mr Bodman said that he is not `uncomfortable' with a plan by the Organisation of Petroleum Exporting Countries (OPEC) to maintain crude oil supplies at current levels until September.

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