A $5-billion undersea UAE-Gujarat gas pipeline has been proposed by the South Asia Gas Enterprise (SAGE). In this article, you can read more about this proposed pipeline and the potential benefits it can bring. This topic is relevant for the IAS exam geography, economy and international affairs segments.
UAE-Gujarat Gas Pipeline
- Route and Options for Gas Import:
- The pipeline plans to transport 31 mmscmd of gas to India through a 2,000 km corridor for a period of 20 years.
- The project intends to connect the Middle East and India through a route that includes Oman and the UAE, bypassing sensitive regions.
- It offers the opportunity to import gas from Oman, UAE, Saudi Arabia, Iran, Turkmenistan, and Qatar, all of which have substantial gas reserves.
- The pipeline has been named by SAGE the ‘Middle East to India Deepwater Pipeline’ (MEIDP).
- Feasibility and Potential Savings:
- Technical and financial feasibility studies conducted showed positive results.
- The project has the potential to save approximately ₹7,000 crores annually compared to importing a similar quantity of liquefied natural gas (LNG).
- Importance:
- The undersea gas pipeline project has the potential to enhance energy security, reduce costs, and meet the growing demand for gas in India’s power and fertiliser industries.Â
- It would also contribute to the country’s transition to a low-carbon economy.
- It will also help us in increasing the share of gas to 15% in the energy basket.
- Cost Comparison with LNG:
- Gas pipelines are more cost-competitive than LNG for distances up to 2,500-3,000 km due to the high costs associated with gas liquefaction, transportation, and regasification.
- The proposed pipeline could save $5 to $6 per mmBtu (million British thermal units) compared to LNG prices, which can be volatile.
Regional Gas Discoveries:
- Recent large gas discoveries in Oman, the UAE, and Saudi Arabia have created an opportunity for long-term gas supply agreements.
- The Middle East aims to invest more than $120 billion to boost gas production by 14 billion cubic feet per day (bcfd) by 2030.
About South Asia Gas Enterprise (SAGE):
- An international consortium of companies specialising in deepwater pipeline projects.
- It aims to establish a direct undersea gas pipeline route connecting the Gulf region to India.
- SAGE is promoted by the New Delhi-based Siddho Mal Group, in Joint Venture with a UK-based Deepwater Technology Company.
- SAGE is working with a Global Consortium of reputed companies in the field of Deepwater Pipelines, to create a Multi-Billion Dollar “Energy Corridor” that can transport gas from the Middle East to India, bypassing the land route through Pakistan.
- SAGE Deepwater Pipeline is completely independent of the Indian Government’s Onshore Pipeline Initiatives.
UAE-Gujarat Undersea Gas Pipeline Proposed [UPSC Current Affairs]:- Download PDF Here
| Related Links | |||
| India- UAE Relations | Oil Diplomacy | ||
| National Infrastructure Pipeline | API (Turkmenistan – Afghanistan – Pakistan – India Pipeline) | ||
| Ashgabat Agreement | India’s Bilateral Relations | ||
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