India, Iran Hold Sub-sea Pipeline Talks
The long-proposed $4.5bn sub-sea gasline between Iran and India is likely to get some momentum with a planned visit by key domestic gas buyers, including Gas Authority India (Gail) and major refiner Indian Oil Corp, to the Persian Gulf country early March.
The pipeline is projected to bring 31.5mn m³/d of Iranian gas via the Oman Sea and Indian Ocean to Gujarat, India. The project is estimated to start operating two years after work starts.
A senior Iranian official said in December that talks were being held to build the pipeline from Iran to India following New Delhi’s rejection of the proposal for an on-land pipeline that would pass through Pakistan (Peace pipeline).
"Negotiations are under serious consideration,” said National Iranian Gas Export Company managing director Alireza Kameli at the World Energy Policy Summit in India.
The source of gas is not decided but Indian companies have had long negotiations with Iran to develop a giant gas field in the Persian Gulf.
In September, ONGC Videsh (OVL) submitted a $10bn integrated proposal to Iran for developing the Farzad B gas field in the Persian Gulf and shipping gas to India.
The field is estimated to have 12.5 trillion m³ of resources. OVL had helped discover gas in Iran’s Farsi gas block (including Farzad B gas field) in 2008, but it did not bid for it because of economic sanctions on Iran.
In September 2014, Iran had put Farzad B on a list of fields it planned to auction with a value of $5bn, citing delays by OVL in its development.
In April 2015, a team of Indian petroleum ministry officials visited Iran to persuade it to give the contract for development of the field to OVL. The first phase of Farzad B is projected to produce 31mn m3/d, while the second and third phases would add 46mn m3/d and 34mn m3/d to this level.