PM: Resolve price expectations in Asian gas market

Prime Minister Manmohan Singh Tuesday urged a resolution of the differences in price expectations between buyers and sellers of natural gas that prevents countries like India from securing adequate quantities of the energy resource.

"Despite having a huge demand for natural gas, countries like India are not able to secure adequate volumes owing to differences in price expectations between buyers and sellers," Manmohan Singh said in his inaugural address at the 8th Asia Gas Partnership Summit organised by the Federation of Indian Chambers of Commerce and Industry (FICCI).

Hoping the summit would result in stronger partnerships between Asian buyers and international sellers, Manmohan Singh said India is encouraging both domestic and global companies to explore its natural gas resources to bridge the demand-supply gap.

"I take this opportunity to assure investors of our government's commitment to providing a stable and enabling policy environment for exploration of new sources of energy," Manmohan Singh said.

He pointed out that the summit's theme - "Asian Gas Market: challenges and opportunities in the changing paradigm" - is of great importance given the huge demand for natural gas in Asia and the recent rapid developments in the oil and gas sector.

Asia has been the driver of the global liquefied natural gas (LNG) demand in recent times and now accounts for around 70 percent of LNG traded globally.

Pointing out that the shale gas revolution after discoveries in the US has been made possible primarily by technology and market-based pricing, the prime minister said this combination is essential to provide rapidly growing economies like India with the necessary energy solutions.

State-run gas distributor GAIL India is the promoter of the two-day summit.