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India-Oman deepwater gas pipeline to cost up to $3.4 bn

Mumbai, Apr 1:The proposed deepwater gas pipeline designed to transport large quantities of natural gas from the Oman coast to India by South Asia Gas Enterprise Pvt Ltd (SAGE) will cost around $2.1-3.4 billion for first line. The tariff would be around $1.1-1.8 per mmbtu, much cheaper compared with the current $5-6 per (domestic use) mmbtu in India.

According to sources, SAGE will develop the deepwater pipeline system with the help of Heerema group and in association with existing regional gas transportation and distribution companies. Last month, a high-level meeting was held between SAGE and ministry of power, where SAGE made a presentation to GAIL, EIL, IOC, Tata group, NTPC and some domestic fertiliser companies.

At present, Indian LNG import prices, for fertiliser feedstock, are around $5.50-6 per mmbtu and naphtha prices are $12 per mmbtu. SAGE will seek a tariff expected not to exceed $1.80 per mmbtu for the first line...

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