As per Assocham views, India must explore the economic opportunities from lifting of western sanctions on Iran and bypass Pakistan for import of natural gas from Iran.
By signing preferential trade agreement (PTA) it will enhance merchandise trade West Asian strategic nation, the industry suggested.
It also said that, lifting of western sanctions on Iran gives great opportunity for India to transport natural gas from Iran to Porbandar port in Gujarat, bypassing Pakistan – the main perspective for other multilateral projects of Turkmenistan-Afghanistan-Pakistan-India (TAPI) and Iran-Pakistan-India (IPI).
Lifting of sanctions also gives an opportunity to start an undersea pipeline project, which bypassing Pakistan could bring Iranian gas to India via the Arabian Sea.
The South Asia Gas Enterprises Pvt (SAGE) has proposed an under sea pipeline bypassing Pakistan’s exclusive economic zone (PEEZ) to transport up to 1.1 billion standard cubic feet per day of gas from Chabahar in Iran and Ra’s al Jifan in Oman to Porbandar in Gujarat with a spur line to Mumbai later. As the IPL pipeline are struck and the TAPI pipeline is yet to take off.
The chamber informed, “The 1,200-1,300 km pipeline is set to cost around US$ 4.5 billion.”
Assocham pointed out that India needs to resurrect the Iranian oil and gas project, which was stalled due to international sanctions. The country is rapidly looking for over sea natural gas opportunities.
In 2008 Indian public sector companies such as, India Oil Corporation, ONGC Videsh and Oil India had discovered gas in the Farzad- B block in Iran and subsequently they developed the plan to recover about 12.8 trillion cubic feet of gas.
Assocham informed that before international sanction on Iran, India had already spent US$ 90 million on exploration due to which the plan had to be dropped.
Assocham Secretary General D S Rawat said, “Due to political dilemma the proposed pipeline projects involving Pakistan, might remain in dream. To enhance energy security, India must explore alternative security.”
Also known as Middle East to India Deep water Pipeline (MEIDP) project, the SAGE pipeline would also commission from Chabahar on the southern coast of Iran and Ra’s Al Jifan on the Oman coast.
Association pushed for PTA with Iran, citing the example that how it helped and increased Pakistan to boost its exports to Iran and increase bilateral trade.
During the first three years of the PTA i.e. from 2006-07 to 2008-09 Pak-Iran trademarked progress in which bilateral trade to an unprecedented level of US$ 1,321.32 million from US$ 573.76 million.
The post India should bypass Pakistan for gas pipeline with Iran : Assocham appeared first on EPC World.