Construction work on a pipeline, that aims to supply natural gas from the Middle East to India via a major hub in Oman, could commence as early as in 2015, Zawya new agency has reported.
The company behind this ambitious deep-sea multibillion dollar project is South Asia Gas Enterprise (SAGE).
Dr Herman Franssen, International Gas Consultant at the New Delhi based firm, said the proposed venture builds on a two-decade-old initiative by the Sultanate to supply Omani gas to India via a pipeline passing through the Arabian Sea.
An upgraded version of that project, now dubbed the ‘The Middle East to India Gas Pipeline’, envisions the construction of a transnational natural gas pipeline connecting suppliers in the Middle East to India.
Franssen said that much of the technical, economic and financial preparations have been completed for the $5bn venture.
“SAGE is now discussing a gas purchasing agreement with the sellers and hopes to commence laying the pipeline next year,” he added.
Details of the project will be showcased at the Offshore Development Oman Conference, which opened today.
Franssen told the Observer that the SAGE project offers a “safe, economic and reliable means” of building the deep-sea pipeline that will connect the gas-rich Gulf and Middle East with increasingly energy-hungry India.
The initial idea of the project was conceived about two decades ago when two major gas fields – Saiih
Rawl and Saih Nihayda – were discovered in Oman.
Combined together, they have natural gas reserves to meet domestic consumption for several decades while leaving enough gas for one export project.
