India, Iran discuss underwater gas line bypassing Pakistan

Discussion in 'West Asia & Africa' started by LETHALFORCE, Jun 8, 2010.

  1. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    http://timesofindia.indiatimes.com/...as-line-bypassing-Pak/articleshow/6021888.cms

    India, Iran discuss underwater gas line bypassing Pak

    NEW DELHI: The prospect may not have sounded feasible initially, but India is now coming round to the idea of having an underwater gas pipeline with Iran which would allow it to bypass Pakistan.

    As India's participation in IPI pipeline remains bogged down by concerns over security and pricing, official sources said New Delhi has already discussed building a pipeline under Arabian Sea with Tehran.

    According to officials, the underwater pipeline will not just help India evade Pakistan but also allow government to engage Iran in a more fruitful manner. In fact, when Turkmenistan president Gurbanguly Berdimuhamedov visited India last month, the two sides discussed the prospect of transporting gas from Turkmenistan to northern Iran with help from India and using the underwater pipeline option to transport gas to India from southern Iran.

    The Turkmenistan president was also very keen on initiating work on the proposed TAPI (Turkmenistan-Afghanistan-Pakistan-India) pipeline but New Delhi is not very enthused about the project because of the instability in Afghanistan and Pakistan.

    The head of the supervisory board of South Asia Gas Enterprise Private Ltd (SAGE), T H P Pao, had earlier said that India and Iran had discussed building this pipeline which would be about 700 miles in length. Because of the high costs involved, the construction of a deep sea pipeline in the past has been considered financially unviable.

    With India not participating, Pakistan and Iran have gone ahead with IPI pipeline which will connect South Fars gas field of Iran, home to one of the largest gas reserves in the world, with Balochistan in Pakistan.

    The two countries are likely to finalise the agreement this week. Foreign minister S M Krishna, who visited Tehran last month, has maintained that India is still holding discussions with Iran over IPI pipeline. He has also said that India will participate only if concerns over security and pricing are addressed adequately.
     
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  3. BunBunCake

    BunBunCake Regular Member

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    Wait, doesn't that have to cross Pakistan's waters? ;(
    Arabian Sea?
     
  4. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    It could be in international waters outside of the pakistani perimeter.
     
  5. nitesh

    nitesh Mob Control Manager Stars and Ambassadors

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    This deal should not happen as Iran is acting greedy until they give favorable prices this should remain to just "talks"
     
  6. ganesh177

    ganesh177 Regular Member

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    How about convincing iran to SCRAP out the I-P pipe , and rather push for under water pipeline, and then providing the gas for pakistan from india so that we are in driving seat. After all we are the prime customer here, not pakistan.

    By the way has the work on IP begun already ?
     
  7. Dark Sorrow

    Dark Sorrow Respected Member Senior Member

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    This is the most weird idea that i have ever heard.
    No.
     
  8. Yusuf

    Yusuf GUARDIAN Administrator

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    Not going to happen. Its probably just a ploy to keep iran on tenterhooks and nothing more so as to have some additional diplomatic leverage. Iran gas is linked with oil prices as we just cannot go with it. The price GoI has fixed for KG basin is $4.2 whereas if we go with iran linked to oil prices it will go to $6 and if we consider that oil price will go to $100 a barrel, it would translate to about $9 and if it goes to something like $150 a barrel then it will be even higher. And this is just gas price and not considering the price of the pipeline which will be very high.

    India has to move towards the large reserves of shale gas it has. If done well it could give us gas for as low as $2.5.
     
  9. Iamanidiot

    Iamanidiot Elite Member Elite Member

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    may be that discussion is also a message to pakistanyou are a no-issue here
     
  10. Oracle

    Oracle New Member

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    GoI should scrap this deal. Who knows what we would be left with it after US takes control of Iran's gas(incase US, Israel takes military action against Iran). Also as Yusuf said, economically this is not feasible.
     
  11. plugwater

    plugwater Elite Member Elite Member

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    http://www.thehindubusinessline.com/2008/12/10/stories/2008121050010800.htm
     
  12. ajtr

    ajtr Veteran Member Veteran Member

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  13. nitesh

    nitesh Mob Control Manager Stars and Ambassadors

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    ^^

    That will be interesting possibility but isn't that will depend on total carrying capacity of existing pipe line?
     
  14. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    cross posted

    http://www.worldpoliticsreview.com/trend-lines

    Global Insider: Iran-India Energy Relations

    India and Iran are discussing a new underwater pipeline project that would circumvent a stalled pipeline project involving the two countries and Pakistan. In an e-mail interview, East West Institute Vice President of Programs Dr. W. Pal Singh Sidhu explains Iran-India energy relations.

    WPR: What is the current energy relationship between Iran and India?

    Pal Sidhu: India is the world's fifth-largest consumer of energy resources and heavily dependent on imports. Its energy consumption is estimated to rise to 27.1 quadrillion BTUs by 2025 -- the largest expected increase in energy use after China. Even with new domestic oil and gas finds, India's dependence on imports will increase. Iran is OPEC's second-largest oil producer and has the world's second-largest natural gas reserves. Today Iran is the second-biggest supplier of crude oil to India, which accounts for 85 percent of all imports from Iran to India.

    In addition, there has been an on-again, off-again multi-billion-dollar deal to construct a gas pipeline from Iran to India, through Pakistan. While a deal was signed by Iran and Pakistan on Nov. 11, 2007, India has still not signed on. Although India resumed discussions with Iranian President Mahmoud Ahmadinejad's on the deal in April 2008, the agreement has still not been finalized. The U.S. opposition to this pipeline deal does not appear to be a factor in New Delhi's reluctance to join the project.

    Separately, Indian firms have won approval to take equity stakes in the Azadegan oil field project and South Pars gas field Phase 12.

    WPR: How has that relationship been affected by U.N. Security Council sanctions targeting Iran?

    Sidhu: At the moment the relationship is unaffected by the U.N. Security Council sanctions because the sanctions do not cover the export and import of oil and natural gas. Even the new round of sanctions is unlikely to cover the oil and gas sector. However, some private Indian companies which are supplying refined petroleum products to Iran might find themselves in the spotlight if future sanctions also target the oil and gas industry.

    Since India is not a member of the U.N. Security Council, and does not have a say in the U.N. sanctions, its relations are unaffected by sanctions. However, the situation is likely to change from 2011 when India is likely to be elected onto the U.N. Security Council and will have to vote on future sanctions against Iran. India's vote will directly impact on Indo-Iranian relations.

    WPR: What is India's broader relationship with Iran, and what will be the key drivers of their relationship moving forward?

    Sidhu: India describes its relationship with Iran as a "civilizational" and "historical" one, dating back thousands of years. More realistically and in the present day, India's relationship with Iran is complex. The key driver at present and for the future is likely to remain energy resources and economic relations. India will continue to import oil and gas from Iran and will also play an important role in developing Iran's oil and gas infrastructure, as well as other infrastructure, such as the port at Chahbahar. There is also likely to be convergence of interests and some cooperation on and in Afghanistan. The biggest area of difference between Iran and India is likely to be Tehran's nuclear weapons ambitions. India has categorically stated that a nuclear-armed Iran is not acceptable, although New Delhi has not made clear how exactly it will prevent Iran from acquiring this capability.
     

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