Iran may seal $4.5-bn undersea gas pipeline agreement with India

Discussion in 'Economy & Infrastructure' started by Screambowl, Dec 9, 2015.

  1. Screambowl

    Screambowl Senior Member Senior Member

    Joined:
    Jan 1, 2015
    Messages:
    4,618
    Likes Received:
    3,226
    Location:
    N/A
    http://www.business-standard.com/ar...line-agreement-with-india-115120700605_1.html

    With the lifting of Western sanctions, hydrocarbon-rich Iranis positive on finalising an agreement with India for setting up a $4.5-billion undersea gas pipeline.

    Iran state-owned National Iranian Gas Export Company’s (NIGEC’s) managing director Alireza Kameli said the 1,400-km pipeline would transport natural gas via the Oman Sea and Arabian Sea, and was among the four major contracts under negotiation by the Iran’s state-owned firm. “Our negotiations have been under serious considerations for some time and we hope to soon finalise an agreement for the South Asia Gas Enterprise (SAGE) pipeline project,” Kameli said, during the fifth World Energy Policy Summit here.

    SAGE’s proposed pipeline would bypass Pakistan’s exclusive economic zone and transport up to 31.1 million standard cubic metres per day of gas from Chabahar in Iran and Ra’s al Jifan in Oman to Porbandar in Gujarat, with a possible extension to Mumbai later. India has not been participating in talks on the Iran-Pakistan-India (IPI) pipeline. Also, the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project is yet to take off.

    Companies keen to buy gas from Iran would be able to sign supply contracts with NIGEC and theSAGE pipeline would work as a common carrier, charging a fees. The current rate for bringing gas from Iran to Gujarat is $2.25 per million British thermal units.


    “Pakistan is building a smaller pipeline from Iran to Pakistan. Also, 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,” SAGE director S K Jainsaid.

    Adding: “The gas infrastructure will be used by all state-owned companies like GAIL and Indian Oil Corporation.” SAGE, a consortium of global companies in deepwater pipeline projects, is promoted by Delhi-based Siddho Mal Group, in joint venture with a UK-based deepwater technology company.

    ain added the consortium has been working on the geo-politically sensitive project for more than seven years. “Laying the pipeline is a two-year job. Getting the gas supply contracts and financing takes time. SBI Caps is our financial advisor,” Jain said.

    Commenting on the IPI pipeline, Kameli said Iran is focusing on the Iran-Pakistan part of the project. New Delhi has not been participating in talks on IPI pipeline.

    “Iran’s production is going to rise from the current 700 million cubic metre per day to over one billion cubic metre per day in three years. So, Iran will be a good and reliable supplier of natural gas to consuming nations like India,” Kameli said.

    In a related development, ONGC Videsh managing director N K Verma refused to confirm recent reports on Iranian authorities having agreed to award a $3-billion contract for the development of the Farzad-B gas field in the Persian Gulf to India. “We have not yet heard anything on the matter from them,” Verma, who was also present in the event, said.

    ONGC Videsh, the overseas investment arm of state-owned explorer Oil and Natural Gas Corp had earlier this year submitted a $10-billion integrated proposal to Iran for developing the gas field and shipping the gas to India. A consortium of OVL, Oil India and Indian Oil Corporation had discovered 12.8 trillion cubic feet of reserves in the gas field in the Farsi block in 2008.

     
  2.  
  3. Dark Sorrow

    Dark Sorrow Respected Member Senior Member

    Joined:
    Mar 24, 2009
    Messages:
    1,629
    Likes Received:
    419
    Location:
    Mumbai
    Thats good news indeed.

    Please enter a message with at least 30 characters.
     
  4. pmaitra

    pmaitra Moderator Moderator

    Joined:
    Mar 10, 2009
    Messages:
    31,640
    Likes Received:
    17,124
    Location:
    EST, USA
    Very good.

    Now, I hope the payments are made in BRICS SDR, and not US Dollars.
     
    Screambowl and sabari like this.
  5. Illusive

    Illusive Senior Member Senior Member

    Joined:
    Jun 20, 2010
    Messages:
    2,335
    Likes Received:
    1,418
    spikey360, Screambowl and pmaitra like this.
  6. Bornubus

    Bornubus Senior Member Senior Member

    Joined:
    Oct 13, 2015
    Messages:
    4,149
    Likes Received:
    6,895
    It will serve two purposes.

    1.Energy security in growing India.

    2.Most importantly a signal to pakis that we are not dependent on pak land for connectivity and energy from central Asia as they brag "roads to central asia" runs through pak.

    Additionally,Afghanistan should also take lesson from it look towards Iran rather than pak for connectivity and trade.

    What I don't like are the words may,could and serious negotiations for some time.
     
  7. LETHALFORCE

    LETHALFORCE Moderator Moderator

    Joined:
    Feb 16, 2009
    Messages:
    20,536
    Likes Received:
    6,538
    This will probably cost more than over land routes. Having pak as a neighbor is very expensive for India in many ways . While we share our water with them like a helpless lamb.


    Sent from my iPhone using Tapatalk
     
  8. Screambowl

    Screambowl Senior Member Senior Member

    Joined:
    Jan 1, 2015
    Messages:
    4,618
    Likes Received:
    3,226
    Location:
    N/A
    Most probably, we would require Pakistan's permission in this case too, as the line would come beneath the Pakistan's Exclusive Economic Zone which they have further extended till the extended continent shelf.



    1) the article says it will bypass the Paki EEZ.

    2) The line will come to Porbander.

    How is that possible? Without adding further cost and longer distance Pipeline. And why Porbander, when they can take it to Mumbai, or Kochi.


    Here is the Paki EEZ

    . 550c8f79b8280.jpg
     
    LETHALFORCE and Bornubus like this.
  9. LETHALFORCE

    LETHALFORCE Moderator Moderator

    Joined:
    Feb 16, 2009
    Messages:
    20,536
    Likes Received:
    6,538
    Great another obstacle from Pakistan . Also with gwadar port I don't think they will agree ?


    Sent from my iPhone using Tapatalk
     
  10. Screambowl

    Screambowl Senior Member Senior Member

    Joined:
    Jan 1, 2015
    Messages:
    4,618
    Likes Received:
    3,226
    Location:
    N/A
    Talks will go for another 20 years. That's all ..
     
  11. LETHALFORCE

    LETHALFORCE Moderator Moderator

    Joined:
    Feb 16, 2009
    Messages:
    20,536
    Likes Received:
    6,538
    If done quickly


    Sent from my iPhone using Tapatalk
     
  12. anoop_mig25

    anoop_mig25 Senior Member Senior Member

    Joined:
    Aug 17, 2009
    Messages:
    5,195
    Likes Received:
    2,223
    Well i have been hearing about this news for past 6+ more years.
     
  13. pmaitra

    pmaitra Moderator Moderator

    Joined:
    Mar 10, 2009
    Messages:
    31,640
    Likes Received:
    17,124
    Location:
    EST, USA
    We can just build a pipeline in the blue region and let Pakistan stop it if they can.
     
    LETHALFORCE and hit&run like this.
  14. saty

    saty Tihar Jail Banned

    Joined:
    Sep 11, 2015
    Messages:
    1,112
    Likes Received:
    1,296
    Khangress may deliberately halted this project for their Porki masters for me it is feasible!.Just look at the pipe line it is not only Shia oil but also Sunni oil :p too without paying any transition fee or any future disturbances as Pak-af region is totally terror infected.

    [​IMG]
     
  15. Illusive

    Illusive Senior Member Senior Member

    Joined:
    Jun 20, 2010
    Messages:
    2,335
    Likes Received:
    1,418
    So India shares water with Pak, and pak can't provide land access to India. I am pretty sure a deal could have been formulated on basis of mutual agreement where they get water and we get land access long time ago when these things were formulated. So much for the Chanakyaniti.
     
    LETHALFORCE likes this.
  16. salute

    salute Senior Member Senior Member

    Joined:
    Jan 5, 2015
    Messages:
    1,586
    Likes Received:
    786
    Location:
    india
    creation of paki and bangladeshi country or as it was east paki country may be specifically for the purpose of isolating india from west,central and east asia by creating an enemy of india.
     
    LETHALFORCE, Screambowl and raja696 like this.
  17. salute

    salute Senior Member Senior Member

    Joined:
    Jan 5, 2015
    Messages:
    1,586
    Likes Received:
    786
    Location:
    india
    approved by UN........ hmmm :hmm: .......... lets see who are the five india 'friendly' members of security counsel,
    and UN dances on tune of which country or countries.
     
  18. LETHALFORCE

    LETHALFORCE Moderator Moderator

    Joined:
    Feb 16, 2009
    Messages:
    20,536
    Likes Received:
    6,538
    And we have to share Indian waters with the enemy . Seems like Indian negotiators were completely incompetent


    Sent from my iPhone using Tapatalk
     
  19. IBSA

    IBSA Regular Member

    Joined:
    Nov 16, 2011
    Messages:
    926
    Likes Received:
    832
    Location:
    São Paulo
    Not IPI nor TAPI. Likely India will choose the IOI pipeline.

    It avoids passing by Pak territory, but also shall have a Modi particular interesting in IOI, since it will reach India in Gujarat state, his homeland.
     
  20. vishwaprasad

    vishwaprasad Regular Member

    Joined:
    Aug 10, 2012
    Messages:
    354
    Likes Received:
    117
    Can Pakistan threaten this pipe line during war using its advance Agosta 90 B submarines?
     

Share This Page