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Iran, India, Oman Set to Discuss Undersea Gas Pipeline

Source: www.gulfoilandgas.com 3/1/2014, Location: Asia

Iran, India and Oman are planning to begin official negotiations for delivery of the Iranian natural gas to the Indian market through a deepwater pipeline.

Iranian Foreign Minister Mohammad Javad Zarif, Indian Foreign Minister Salman Khurshid, and Omani Foreign Minister Yousuf bin Alawi bin Abdullah are scheduled to meet in the Indian capital, New Delhi, on Friday afternoon to discuss the issue.

This is the first time the negotiations on the project are being held at the ministerial level.

In December 2013, Iran generally agreed to establish the deepwater pipeline, which is planned to cross the Sea of Oman.

Indiaís South Asia Gas Enterprise Pvt. Ltd. (SAGE) has conducted feasibility studies for the planned 1,400-kilometer pipeline, which is estimated to cost USD 4-5 billion and would carry 31 million cubic meters (mcm) per day of gas to India.

The envisaged pipeline will carry gas from Iranís gigantic South Pars gas field.

South Pars covers an area of 9,700 square kilometers, 3,700 square kilometers of which are in Iranís territorial waters in the Persian Gulf. The remaining 6,000 square kilometers, i.e. North Dome, are in Qatarís territorial waters.

India is among Asiaís major importers of energy and relies on Iran to meet a portion of its energy demands. Iran was the second-largest supplier of Indiaís crude oil before illegal US-led sanctions were imposed on the Islamic Republic about two years ago.

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