You are here

India, Oman and Iran restart deepwater gas pipeline talks

06th March 2014

The cost of the pipeline is estimated to be around USD 4-5bn and is expected to carry 31 million cubic metres of gas per day

Gas will be transported from Iran to Oman and then onwards to India

India has revived discussions concerning a project for a deep sea pipeline connecting Oman and Iran to India, the Times of Oman has reported.

The USD 5bn proposal was spoken of separately with Indian Foreign Minister Salman Khurshid and Minister Responsible for Foreign Affairs Yousuf bin Alawi bin Abdullah, and Iranian Foreign Minister Javad Zarif during a meeting.

Syed Akbaruddin, the official spokesperson of India's Ministry of External Affairs, tweeted to Times of Oman that "the issue of considering this further figured in both the meetings."

The pipeline would be beneficial for Iran and India, with Iran holding a large surplus of gas and India having increasing energy demands. India brings in about 75 per cent of its crude oil.

According to India's South Asia Gas Enterprise Pvt Ltd (SAGE), the cost of the pipeline is estimated to be around USD 4-5bn. The pipeline is expected to carry 31 million cubic metres of gas per day.

Last December, the National Iranian Gas Exports Co (NIGEC) revealed that "Negotiations were held with three Indian companies for purchasing gas from Iran, and general agreements have been reached," indicating that the gas would be delivered via this pipeline.

According to the proposal, “gas will be transported from Iran to Oman and then onwards to India. All this will, of course, need careful study. What happened today was an expression of willingness to try and explore the possibility of such a pipeline that was proposed and then given up in the 1990s,” said Yousuf bin Alawi bin Abdullah, the minister responsible for foreign affairs of Oman. Energy-starved India imports almost 80 per cent of its requirements.

This deep sea pipeline would be a substitute for India to the proposed Iran-Pakistan-India gas pipeline, which experienced several complications.

 

Got a news tip? Email news@oilandgastechnology.net