Sri Lankan workers at Hambantota port’s oil tank farm. India recently unveiled a road map for economic cooperation with Sri Lanka, of which the energy sector is central. Ishara S Kodikara / AFP
Sri Lankan workers at Hambantota port’s oil tank farm. India recently unveiled a road map for economic cooperation with Sri Lanka, of which the energy sector is central. Ishara S Kodikara / AFP

India aims to boost energy ties



MUMBAI // India is increasingly focusing on developing energy ties with surrounding countries, which is set to help to boost business opportunities as well as improve energy security.

India this year has been forging closer energy relations with the Indian Ocean island nation Mauritius, as well as Indonesia, among other countries.

“India is actively working to build a network of energy relationships with its neighbourhood,” says Srividya Kannan, the founder and director of Avaali Solutions, a consultancy based in Bangalore. “Consider what India has done in terms of tie-ups with Mauritius, Myanmar, Indonesia, Sri Lanka and Bangladesh, and one gets a sense of the various types of relationships that have been established via this network. India is really getting its act together to best leverage this [position].”

In the case of Mauritius, for example, India already supplies petroleum products to the country, while refiner Indian Oil has a fuel retail network there. The country could be an attractive location for India to store petroleum and sell products to Africa, experts say. India’s oil ministry in February said it would continue to help Mauritius meet its energy demands and bolster its energy security. India stressed that it was committed to assisting the country to become a petroleum hub through its involvement in oil and gas infrastructure development.

Meanwhile, India is nurturing an energy relationship with Indonesia. The first Indonesia-India energy forum was held in Jakarta last month. This resulted in a far-reaching agreement being signed between the countries to look at cooperating in areas including oil, electricity and energy efficiency. Specifically, this could involve India upgrading refineries in Indonesia and India sharing knowledge on renewable energy, according to the Indian government.

India also recently unveiled a road map for economic cooperation with Sri Lanka, of which the energy sector was central. These plans include building a gas-based power plan and an liquefied natural gas terminal, as well as developing a solar power plant in Sri Lanka.

Dharmendra Pradhan, India's energy minister, this month told The Times of India: "We are trying to use energy as a means of diplomacy in a very different way, not only to find overseas sources of hydrocarbons."

Experts note that the strategy is a bold move that could be lucrative for India.

“Using oil as a diplomatic tool with its level of imports is audacious to say the least,” says Suhail Nathani, the managing partner of the Economic Laws Practice, in Mumbai. But he says that it is also a “brilliant” strategy for the country.

India is heavily dependent on oil imports – it is the world’s third-largest importer of crude. The country’s consumption of oil hit a record high last year at 196.5 million tonnes for the year, up by 11 per cent on the previous year, according to government data.

The country’s energy consumption is expected to continue to rise over the coming years amid economic growth and urbanisation. Mr Nathani commends the strategy behind the move to grow its energy ties with nearby countries, because India is in a very strong position to supply those countries with refined petroleum products. “There is global demand for refined petroleum products and India’s diplomacy comes in to play on this front.”

The nation is far ahead of many other countries in the region in terms of the technology and capacity it has to process crude oil, he says.

Mr Pradhan recently said India plans to more than double its annual refining capacity over the coming years from its current 235 million tonnes.

While the country needs to have strategic partnerships for sourcing crude oil, it needs to look beyond this approach to generate more revenues from energy.

“Mauritius – a long-standing friend of India – requires a stable source of refined petroleum products and also bringing in technology to store and distribute petroleum products through its numerous islands,” says Mr Nathani. “With Indonesia, India is seeking a dual approach. Indonesia has surplus oil and coal.”

The benefits for India could be sizeable but such a relationship could allow the countries to develop an interdependency when it comes to the energy sector. India is the third-biggest importer of coal from Indonesia and a number of Indian companies have invested in coal mines in the country.

“It is a win-win situation with India’s technology being made available to an oil and coal surplus country like Indonesia,” says Mr Nathani. “Another consequence is that this alliance will restrict China’s role in the energy markets of Indonesia.”

Aaron Solomon, a partner at Solomon & Co in Mumbai, says India has traditionally been dependent on Opec countries for its oil imports. But, as it looks elsewhere to build energy relations, the opportunities are set to expand. And as India looks towards boosting alternative energy sources, fostering relations with a range of countries could be key.

“India is now strengthening energy relations with other countries to diversify its sources of oil supplies and reduce its dependence on any one nation,” says Mr Solomon. “In parallel, the India government has focused on developing alternative energy sources, such as nuclear, hydro, wind and solar energy.”

He says that means “significant opportunities for Indian and international businesses”.

About 80 per cent of India’s oil demands are met by imports.

“India’s reliance on oil imports rises above 90 per cent by 2040, requiring constant vigilance as to the implications for energy security,” according to the International Energy Agency (IEA), which forecasts that India will be the fastest-growing crude consumer in the world.

But Narendra Modi, the prime minister, has set a target of reducing dependence on oil and gas imports by 10 per cent by 2022.

Beyond the region, India has been developing closer energy ties with countries including the United States and Russia. State-owned Indian oil companies, including ONGC and Indian Oil, have been spending billions of dollars to take stakes in Russian oilfields in Siberia, for example.

With India’s appetite for oil set to grow, experts say its strategy of reaching out to other countries to build diplomatic energy relations is unlikely to affect its energy relations with the UAE.

“India [has said it] is on track to increase its oil imports from the UAE,” says Mr Solomon. “We do not expect the change in India’s energy policy to have any adverse implications on the deep-rooted energy relations between India and the UAE.”

Other experts agree UAE-India relations are only set to strengthen.

“This strategic oil diplomacy will have very little, if any, impact on relations with the UAE,” says Mr Nathani. “The UAE is a very vital ally for India and also a huge stable source of energy for the seemingly insatiable oil dependency in India. India’s relations with the UAE traverse energy. Clearly, this is a special relationship poised to grow.”

business@thenational.ae

Follow The National's Business section on Twitter

Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
  • Stay invested: Time in the market, not timing the market, is critical to long-term gains.
  • Rational thinking: Breathe and avoid emotional decision-making; let logic and planning guide your actions.
  • Strategic patience: Understand why you’re investing and allow time for your strategies to unfold.
 
 
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EKinetic%207%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202018%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Rick%20Parish%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Abu%20Dhabi%2C%20UAE%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Clean%20cooking%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%2410%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Self-funded%3C%2Fp%3E%0A

Director: Laxman Utekar

Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna

Rating: 1/5

THE LIGHT

Director: Tom Tykwer

Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger

Rating: 3/5

Vidaamuyarchi

Director: Magizh Thirumeni

Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra

Rating: 4/5

 

Sui Dhaaga: Made in India

Director: Sharat Katariya

Starring: Varun Dhawan, Anushka Sharma, Raghubir Yadav

3.5/5

HWJN
%3Cp%3EDirector%3A%20Yasir%20Alyasiri%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Baraa%20Alem%2C%20Nour%20Alkhadra%2C%20Alanoud%20Saud%3C%2Fp%3E%0A%3Cp%3ERating%3A%203%2F5%3C%2Fp%3E%0A%3Cp%3E%3C%2Fp%3E%0A
The specs

Engine: Four electric motors, one at each wheel

Power: 579hp

Torque: 859Nm

Transmission: Single-speed automatic

Price: From Dh825,900

On sale: Now

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Revibe%20%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202022%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Hamza%20Iraqui%20and%20Abdessamad%20Ben%20Zakour%20%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20UAE%20%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Refurbished%20electronics%20%0D%3Cbr%3E%3Cstrong%3EFunds%20raised%20so%20far%3A%3C%2Fstrong%3E%20%2410m%20%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFlat6Labs%2C%20Resonance%20and%20various%20others%0D%3C%2Fp%3E%0A
Feeding the thousands for iftar

Six industrial scale vats of 500litres each are used to cook the kanji or broth 

Each vat contains kanji or porridge to feed 1,000 people

The rice porridge is poured into a 500ml plastic box

350 plastic tubs are placed in one container trolley

Each aluminium container trolley weighing 300kg is unloaded by a small crane fitted on a truck

COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EEjari%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3ERiyadh%2C%20Saudi%20Arabia%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3EYazeed%20Al%20Shamsi%2C%20Fahad%20Albedah%2C%20Mohammed%20Alkhelewy%20and%20Khalid%20Almunif%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EPropTech%3Cbr%3E%3Cstrong%3ETotal%20funding%3A%20%3C%2Fstrong%3E%241%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3ESanabil%20500%20Mena%2C%20Hambro%20Perks'%20Oryx%20Fund%20and%20angel%20investors%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%20%3C%2Fstrong%3E8%3C%2Fp%3E%0A
The specs

Engine: Dual 180kW and 300kW front and rear motors

Power: 480kW

Torque: 850Nm

Transmission: Single-speed automatic

Price: From Dh359,900 ($98,000)

On sale: Now

If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.
COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
Emergency

Director: Kangana Ranaut

Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry 

Rating: 2/5

The%20end%20of%20Summer
%3Cp%3EAuthor%3A%20Salha%20Al%20Busaidy%3C%2Fp%3E%0A%3Cp%3EPages%3A%20316%3C%2Fp%3E%0A%3Cp%3EPublisher%3A%20The%20Dreamwork%20Collective%C2%A0%3C%2Fp%3E%0A
How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

Formula One top 10 drivers' standings after Japan

1. Lewis Hamilton, Mercedes 306
2. Sebastian Vettel, Ferrari 247
3. Valtteri Bottas, Mercedes 234
4. Daniel Ricciardo, Red Bull 192
5. Kimi Raikkonen, Ferrari 148
6. Max Verstappen, Red Bull 111
7. Sergio Perez, Force India 82
8. Esteban Ocon, Force India 65
9. Carlos Sainz Jr, Toro Rosso 48
10. Nico Hulkenberg, Renault 34

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
THE SPECS

Engine: AMG-enhanced 3.0L inline-6 turbo with EQ Boost and electric auxiliary compressor

Transmission: nine-speed automatic

Power: 429hp

Torque: 520Nm​​​​​​​

Price: Dh360,200 (starting)

Cryopreservation: A timeline
  1. Keyhole surgery under general anaesthetic
  2. Ovarian tissue surgically removed
  3. Tissue processed in a high-tech facility
  4. Tissue re-implanted at a time of the patient’s choosing
  5. Full hormone production regained within 4-6 months
German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

The Sand Castle

Director: Matty Brown

Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5