Regional energy cooperation

THERE are innumerable issues that the gathered heads of state and government will need to address at the 13th Saarc summit set to begin in Dhaka tomorrow, so many, in fact, that two days will scarcely be enough time to discuss them all.

One issue, detailed discussion of which is long overdue and which we feel is absolutely indispensable to the proceedings, is that of regional energy cooperation. The recent rise in the price of oil world-wide together with the fact that the energy needs of all South Asian countries are set to increase exponentially as we develop and industrialise further should make clear that this is a concern that must be at or near the top of the agenda at the summit.

It is important to take the issue away from one of bilateral concern (e.g. the export of gas from Bangladesh to India) and to locate it within the regional context, which is the appropriate perspective from which to view the matter.

Unlike other regional problems which appear intractable, and the resolution of which remain elusive, the good news with respect to energy is that there exists a blueprint for the approach that needs to be taken that is both workable and effective.

Indeed we are already seeing some level of cooperation at the bilateral level, notably between Bhutan and India and between Nepal and India, and two tripartite gas pipeline negotiations are underway (India-Myanmar-Bangladesh and India-Pakistan-Iran). There is no reason why such arrangements cannot be expanded or replicated to the advantage of all in the region.

Regional energy cooperation would allow the countries of South Asia to leverage economies of scale with respect to the generation of energy, exploit complementarities, and ultimately reduce dependence on energy from outside the region, benefiting the hard currency reserves of the countries and ensuring that they would not need to remain hostage to the notoriously volatile international oil market.

Development of an integrated South Asian energy market and cooperative development of the energy resources in the region can substantially increase the level of energy security in the region, and this will be of major benefit to all Saarc member states, both economically and politically.