Indo-Oman pipeline project scrapped

Indo-Oman pipeline project scrapped
AGENCIES

NEW DELHI, AUG 15: The Government said today that the proposed $ 2 billion Indo-Oman gas pipeline project has been scrapped as the project was found unviable. "Both the sides (Oman and India) have found that it is not viable to have a pipeline in the deep sea," Minister for Petroleum and Natural Gas Ram Naik told PTI here.

GAIL was actively involved in various studies for the proposed deep water pipeline and in addition, the state-owned company was nominated as the nodal agency for purchase of pipeline gas and its marketing in India.

Naik said that the two sides agreed to call off the project simultaneously and a decision to this affect was taken in July this year. Petroleum Ministry sources said that GAIL had undertaken a significant quantum of engineering and technical studies.

However, the project could not proceed further on account of technological limitations of deep water gas pipeline, inadequacy of proven gas reserves as well as project financing issue, the sources said.

Asked about the progress on the Iran-India gas pipeline project, Naik said a joint committee comprising officials from Indian and Iranian side is scheduled to meet in Tehran on August 18-20 to arrive at a decision on the project.

"The joint committee has been constituted to study all the aspects of the project. Even the External Affairs Minister Jaswant Singh had a meeting in Tehran about the project last month," he said.

Iranian government has asked GAIL to consider association of Gazprom for laying the 1500 km long deep water pipeline as the Russian company was already providing technical know-how to National Iranian Gas Company for laying a 2100 metre deepwater gas pipeline from Russia to Turkey, GAIL sources said.

GAIL has already started talks with Gazprom for ascertaining the feasibility of laying a $ 3 billion deepwater pipeline project from Iran to India as an alternative to an offshore pipeline to avoid entry into Pakistan, they said.

They, however, said the earlier plan of an offshore pipeline from Iran to India has not been shelved as the Iranian government was still negotiating with Pakistan on the security aspects of laying such a pipeline as it would pass through their territory.

The pipeline would take about five to seven years to be completed once all the necessary clearances are received, the sources said adding the capacity of the gas pipeline would be two billion cubic feet per day.