Iran and India’s subsea pipeline project

Discussions have been happening between India and Iran about the construction of a subsea pipeline. The US$4.5 billion pipeline will transport natural gas, and travel between the Gulf of Oman, past the Arabian Sea, and to Gujarat on the west coast of India. If approved, it will transport 31 million m³/d.

NIGEC

National Iranian Gas Export Co (NIGEC) Managing Director Alireza Kameli stated: "Negotiations are under serious consideration … We are negotiating with our counterpart South Asia Gas Enterprise (SAGE) on behalf of Indian gas consumers to discuss about laying the sea pipeline from Iran to India.” He continued, saying that once the necessary approvals and a gas sale and purchase agreement (GSPA) have been signed, the pipeline could be built in two years.

Pakistan

Under SAGE, the proposed pipeline is intended to bypass Pakistan’s exclusive economic zone (EEZ).

Conversely, the onland 1036 km Iran-Pakistan-India pipeline has yet to commence. India has not discussed the line since 2007 after issues with security. However, India has never officially stated they have pulled out of the project.

On the other hand, Iran is currently pursuing the Iran-Pakistan section of the project. Kameli stated: "If India is interested, we definitely can look at [extending the line to India]. We welcome India's participation.”

SAGE comments

SAGE Director S K Jain stated: “… We have been talking about TAPI and IPI for more than 20 years. It is time for at least one project to get going. Both the oil ministry and the ministry of external affairs are supportive of the project. The gas infrastructure will be used by all state-owned companies like GAIL and Indian Oil Corporation.”

Jain continued, explaining that "SAGE will not be buying gas from Iran. It will lead an international consortium for building the pipeline. [The firm] will next year conduct a front end engineering and design (FEED) study and tie-up financing."

Sources: DNA India, Economic Times, Business Standard, Rigzone

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