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‘Undersea line from Iran to port cheap gas’:
Context
Indian must push for a trans-national deep water gas pipeline from Iran bypassing Pakistani EEZ (Exclusive Economic Zone).
What is the plan?
- South Asia Gas Enterprise Pvt. Ltd. (SAGE) is looking to lay the underline sea pipeline, travelling first to Oman and them to the coast of Gujarat.
- The study says that the cost of landed gas through this pipeline would be $2 cheaper in comparison to importing LNG.
- SAGE is looking for the support of Indian government for pipelines.
- The pipeline is planned to carry 31.5 million standard cubic meters gas per day.
- The pipeline can be built in 2 years of the necessary approval required for it’s operationalization.
What would be the benefits for India?
- It will be used as an alternative to the IPI pipeline as India has not been participating for the talks of this pipeline since 2007.
- This 1,300-km undersea pipeline from Iran will avoid Pakistani EEZ.
- LNG through pipelines could be procured at rates less than the price of LNG available in the spot market and even cheaper compared to the rates of domestic fields supply gas.
