By Conrad Prabhu
MUSCAT — Construction work on an ambitious deep-sea pipeline, that aims to supply natural gas from the Middle East to India via a major hub in Oman, could commence as early as in 2015, according to a key representative of South Asia Gas Enterprise (SAGE), the company behind this multibillion dollar project. Dr Herman Franssen, International Gas Consultant at the New Delhi based firm, said the proposed venture builds on a two-decades-old initiative by the Sultanate to supply Omani gas to India via a pipeline passing through the Arabian Sea. An upgraded version of that project, now dubbed the ‘The Middle East to India Gas Pipeline’, envisions the construction of a transnational natural gas pipeline connecting suppliers in the Middle East to India.
As for the present status of the venture, estimated to cost $5 billion, Dr Fransssen stated: “Much of the technical, economic and financial preparations have been completed. SAGE is now discussing a gas purchasing agreement with the sellers and hopes to commence laying the pipeline next year.”
Significantly, this path-breaking project will be showcased at the Offshore Development Oman Conference, which opens at Al Bustan Palace — A Ritz Carlton Hotel tomorrow, December 9, 2014. The two-day event has been organized by well-known event management firm Global Exhibitions and Conferences LLC (GEC) in collaboration with the Ministry of Oil and Gas.
In comments to the Observer, Dr Franssen said the SAGE project offers a “safe, economic and reliable means” of building the deep-sea pipeline that will connect the gas-rich Gulf and Middle East with increasingly energy-hungry India.The consultant had earlier served as an economic advisor to Oman’s Ministry of Petroleum and Minerals (as the Ministry of Oil & Gas was known then). He was also the Economic Advisor to the Oman-India Pipeline Project before it was shelved in the early 90s for want of adequate feedstock.
“The initial idea of the project was conceived about two decades ago when two major gas fields were discovered in Oman — Saiih Rawl and Saih Nihayda — with combined natural gas reserves to meet domestic consumption for several decades while leaving enough gas for one export project.
“The initial idea of the project was conceived about two decades ago when two major gas fields were discovered in Oman — Saiih Rawl and Saih Nihayda — with combined natural gas reserves to meet domestic consumption for several decades while leaving enough gas for one export project.
A proposal was made to build a deep water pipeline from Oman to India. At the same time there was a proposal to build an LNG project. The (Omani) government decided to go ahead with the LNG project and there was not enough gas for a second major gas export project. The decision to go with the LNG project was based on technical, commercial and financial grounds,” Dr Franssen explained.
Promoted by the New Delhi based Siddho Mal Group, in joint venture with a UK-based deep-water technology firm, SAGE is working with a global consortium to create an ‘energy corridor’ that can transport gas from the Middle East to India, bypassing the land route through Pakistan.
At the heart of the project is a proposed 1,300 km pipeline running along the seabed of the Arabian Sea at depths of up to 3,400 metres. Boasting a capacity of 1.1 billion standard cubic feet per day, the pipeline will be designed to transport an estimated 8 trillion cubic feet (TCF) over a 20-year period.
Gas rich producers such as Iran, Qatar and Turkmenistan are seen as potential feedstock suppliers for the project, says SAGE. Hopes of a strong role for Oman in the venture have revived in the wake of last year’s announcement by the government that it had signed a deal to import natural gas from neighbouring Iran.
The Sultanate figures prominently on the route of SAGE’s Middle East to India Pipeline project. SAGE has identified two options for the transportation of natural gas through its undersea infrastructure. Both options originate in Oman at the Middle East Compression Station proposed near Ras al Jifan on the Omani coast. (OEPPA Business Development Dept)
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