The renewed war situation in the Middle East and the tension on the Strait of Hormuz are affecting the global energy supply. Meanwhile, India, along with Oman, has found a way in which there will be no need for the Strait of Hormuz. To ensure that the energy supply in India is not disrupted, a project to lay a long pipeline between Gujarat and Oman has been announced. This gas pipeline will be laid in a depth of about 2000 kilometers across the Arabian Sea.

Amidst the ever-changing geopolitics of the world, India has taken steps towards ensuring its energy supply. The Oman-Gujarat Deep-Sea Gas Pipeline Project was considered many times in the last 30 years, but due to huge expenses, technical problems and questions like the benefits of this project, it never progressed beyond planning. South Asia Gas Enterprise (SAGE) has been promoting this project for years. He says that they have already done technical and financial assessment for the planned route as well as survey of the sea surface.

How much will the gas pipeline cost?

This project will cost around Rs 40,000 crore. It will bring natural gas directly from Oman to the western coast of India (Gujarat) through the world’s deepest sea route. With the construction of this pipeline, a safe direct route for energy will be created between the Gulf countries and India. With this, India will not have to depend on sea routes like the Strait of Hormuz.

Why is this project important for India

India imports most of its crude oil needs and is largely dependent on foreign supplies for natural gas, especially LNG. Most of it comes to India from Gulf countries through the Strait of Hormuz. If there is any kind of obstruction on this route, it can have a direct impact on the global energy market, which can affect ship fares, fuel prices and supply chains.

At present, the situation on the Strait of Hormuz due to the Middle East war has made it clear how risky it can be to depend only on this sea route. Huge fluctuations in LNG prices and safety of ships revived interest in this pipeline project. Before importing LNG, the gas is converted into liquid. After that it is brought through tankers and on reaching India it is converted into gas again. The gas will be able to reach India directly through the pipeline.

How is the proposed pipeline project?

The Petroleum Ministry has recently tasked government companies like GAIL, Engineers India Limited and Indian Oil Corporation to prepare a detailed feasibility report based on the pre-feasibility study submitted by SAGE. This could pave the way for formal talks with Oman on gas supply, financing and implementation.

Under this project, some part of the pipeline is likely to be more than 3,000 meters (3 KM) below sea level. On one hand, this can help India in diversifying its energy sources, while on the other hand, Oman will get a stable export market. According to the project proposals, the cost of sending gas through this pipeline could be between $2 to $2.25 per MMBTU.

Also read: Europe’s sanctions on Iran begin! Action taken regarding threat to freedom of navigation in Hormuz