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India, Iran discuss undersea gas pipeline bypassing Pakistan
A senior Iranian official said on Monday that negotiations are being held to build a $4.5 billion undersea gas pipeline from Iran to India following New Delhi’s rejection of the proposal for an on-land pipeline that would pass through Pakistan.
“Negotiations are under serious consideration,” said National Iranian Gas Export Company managing director Alireza Kameli at the World Energy Policy Summit in India.
Necessary approvals and agreements for gas sale and purchase are yet to be signed, the official said. The pipeline from the Iranian coast via the Oman Sea and Indian Ocean to Gujarat will likely to be built in two years and will carry about 31.5 million standard cubic metres gas per day.
“We welcome India’s participation. At the moment, Iran is in negotiations with South Asia Gas Enterprise (SAGE) for construction of an undersea line,” Kameli said.
Further, according to the proposal which is currently under scrutiny, SAGE will lay a 1,400km pipeline bypassing the exclusive economic zone (EEZ) of Pakistan. Companies wishing to buy gas from Iran will have to rent the pipeline.
“SAGE will not be buying gas from Iran. It will lead to an international consortium for building the pipeline,” Subhodh Kumar Jain, director of the New Delhi-based SAGE said, while adding that SBI Caps is advising them on the project.
India has not participated in talks on the 1,036km Iran-Pakistan-India ((IPI)) gas pipeline since 2007, owing to security and commercial threats.
Referring to the IPI project earlier, Assocham Secretary General D S Rawat remarked that the proposed pipeline projects involving Pakistan may not materialise due to the critical political situation.
"Given the kind of serious political problems, the proposed pipeline projects involving Pakistan, it is feared, may remain a pipe dream. All other viable alternatives to enhance India’s energy security must be explored,” he said.
The consortium of Indian public sector companies, ONGC Videsh, Oil India and India Oil Corporation, had discovered gas in the Farzad-B block in Iran in 2008 and subsequently, prepared a field development plan to recover about 12.8 trillion cubic feet of gas. However, according to Assocham, the plan had to be abandoned following sanctions on Iran. India has already spent $90 million on exploration.
A senior Iranian official said on Monday that negotiations are being held to build a $4.5 billion undersea gas pipeline from Iran to Indian west coast
following India’s rejection of the proposal for an onland pipeline that would pass through Pakistan.
“Negotiations are under serious consideration,” said National Iranian Gas Export Company managing director Alireza Kameli at the World Energy Policy Summit here.
The planned pipeline from the Iranian coast via the Oman Sea and Indian Ocean to Gujarat is proposed to carry 31.5 million standard cubic metres gas per day and will be built in two years, from the date necessary approvals and a gas sale and purchase agreement are signed, he said.
“We welcome India’s participation. At the moment, Iran is in negotiations with South Asia Gas Enterprise (SAGE) for construction of an undersea line,” he said.
As per the proposal being discussed, SAGE will lay the 1,400 km pipeline bypassing the exclusive economic zone (EEZ) of Pakistan. Any company wanting to buy gas from Iran can rent the pipeline.
“SAGE will not be buying gas from Iran. It will lead an international consortium for building the pipeline,” said Subhodh Kumar Jain, director of the New Delhi-based SAGE.
“SBI Caps is advising us on the project,” he added.
India has not taken part in the talks on the 1,036 km Iran-Pakistan-India gas pipeline since 2007, citing security and commercial concerns.
Meanwhile, the Teheran-based Mehr news agency has reported that Iran has agreed to award a $3 billion contract to develop the Farzad B gas field in the Persian Gulf to a consortium of Indian companies led by state-run Oil and Natural Gas Corp (ONGC).
Mehr quoted the director of the Falat Ghare oil company, Saeed Hafezi, as saying the easing of sanctions after Iran’s nuclear deal with world powers, signified that the consortium can resume field development, the first phase of which aims to produce one billion cubic feet of natural gas per day.
The Farzad B field, successfully discovered by the Indian explorer’s overseas arm ONGC Videsh Ltd (OVL), is estimated to hold initial in-place gas reserves of 12.5 trillion cubic feet.
ONGC officials here, contacted by us on Monday, declined knowledge of the latest developments, but said a proposal submitted by the consortium had cited around $3 billion as costs for the first phase of development of the Farzad B field.
Guidance :
SSridhar Ji : INTEC (I hope you remember them) are involved!
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