International consortium South Asia Gas Enterprise (SAGE) is seeking the political and diplomatic backing of the Ministry of Petroleum and other stakeholders to develop a $5bn undersea gas pipeline from the Gulf to India.
The Middle East-India Deepwater Pipeline (MEIDP), proposed about a decade ago, failed to materialise due to western sanctions.
SAGE’s project can lead to an annual saving of around $945 million in comparison to importing similar amounts of liquefied natural gas, said Subodh Kumar Jain, a director of SAGE, which has carried out technical and financial feasibility studies.
The proposed 2,000-km energy corridor connecting the Middle East and India would offer options to import gas from Oman, UAE, Saudi Arabia, Iran, Turkmenistan and Qatar.
Jain said the project is more viable now due to new gas discoveries in Oman, UAE and Saudi Arabia, as well as Middle East’s plan to increase gas output by 14 billion cubic feet per day by 2030.
SAGE, promoted by Delhi-based Siddho Mal Group along with a UK-based deepwater technology company, has made presentations to Abu Dhabi National Oil Company’s gas master planning division, and to other gas suppliers in the Middle East and various Indian ministries.
The route being looked at will go via Oman and UAE through the Arabian Sea to avoid geo-politically sensitive regions.
The proposed pipeline promises to deliver 31 million metric standard cubic metres per day of gas to India under a 20-year long-term supply contract.
The buyers can purchase gas from the Middle East by paying SAGE a pipeline tariff of $2 to $2.25 per MMBtu range.
