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India-China energy partnership favorable for Asia
(AFP)
Updated: 2005-10-03 09:06

However, the ADB cut its GDP forecast for Southeast Asia to 5.0 percent in 2005 due to poor harvests in the Philippines and Thailand, a cyclical downturn in the global electronics sector and higher oil prices.

According to White, it is better to have New Delhi and Beijing working together than competing, preventing "a competition for power and influence."

Last year, China overtook Japan as the world's second largest crude importer after the United States. It relies on imports for about 3.7 million barrels per day or 40 percent of its oil needs.

India was the world's fifth largest petroleum consumer in 2004 and imports nearly 70 percent of its oil needs.

Last year, it consumed a little over two million barrels a day and a government paper has forecast that by 2025, the figure will rise to 7.4 million barrels a day.

While analysts agreed it was a wise move by China and India to work together to source for energy supplies, they cautioned against any high expectations because it's still early days.

"It will be unwise to assume that the cooperation will succeed or produce substantive results," said White from the Australian National University.

David Ernsberger, Asian editorial director with energy information provider Platts, said "Chinese companies are keen to bring oil and gas to China, while Indian companies are keen to bring these products to India, and it will be interesting to see how a quid pro quo is reached."


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