India-China joint group on energy may meet shortly
India and China are set to roll out a buyers’ bloc to bargain collectively for crude oil purchases as US sanctions on Iran threatens to inflate oil bills. The two countries are finalising the ‘time schedule’ and ‘detailed agenda’ for the first meeting of a joint working group (JWG) on energy, said a government official, requesting anonymity.
The group will not only discuss oil purchases, but will also extend to liquefied natural gas (LNG), including cargo swap options for gas. The potential tie-up, which is expected to have a major bearing on the global energy architecture, will also see the two countries look at alternative fuels such as shale oil and gas, and gas hydrates, said the official cited above. “We are working on a possible meeting of the JWG soon. The idea is to make the meeting very productive.”
The US said recently that it will not extend the exemptions to eight countries, including China and India, from its sanctions against Iran from 2 May. US commerce secretary Wilbur Ross said recently that the US could not ensure supply of cheaper oil to India, following the sanctions on Iran, as the commodity is controlled by private companies.
