Iran-India Underseas Gas Pipeline Under Serious Consideration

A senior Iranian energy official on Monday said talks are underway to build a $4.5 billion undersea gas pipeline to the western Indian state of Gujarat.

According to a report published by Press Trust of India Tuesday, National Iranian Gas Export Co (NIGEC) Managing Director Alireza Kameli said at the World Energy Policy Summit in New Delhi that negotiations are under serious consideration.

Indian company South Asia Gas Enterprise Pvt. Ltd. (SAGE India) has proposed to build the undersea pipeline. The SAGE pipeline would originate at Chabahar on the southern coast of Iran and Ras Al-Jafan on the Oman coast, and after traversing deep in the Arabian Sea, would bring gas to Porbandar in south Gujarat.

SAGE is promoted by the New Delhi based Siddho Mal Group, in joint venture with a UK-based Deepwater Technology Company. According to the company website, it is working with a global consortium of some of the most reputed companies in the field of deepwater pipelines, to create a multi-billion dollar "energy corridor" that can transport gas from the Middle East to India, bypassing the land route through Pakistan. Any company wanting to buy gas from Iran can use the pipeline for a rent.

"SAGE will not be buying gas from Iran. It will lead an international consortium for building the pipeline," Press Trust quoted its Director Subhodh Kumar Jain as saying. The company will next year conduct a FEED study and tie-up financing.

Although Pakistan has urged India to reconsider jointing the Iran-Pakistan gas pipeline project but New Delhi has not shown much interest. Iran-Pakistan pipeline was originally called Iran-Pakistan-India pipeline but India later withdrew due to concerns about security situation in Pakistan.