The UAE-Gujarat Gas Pipeline Proposal

• The Path and Potential Gas Import Options:
  • The pipeline is designed to transport 31 mmscmd of gas to India via a 2,000 km undersea corridor for a duration of 20 years.
  • The project aims to connect the Middle East and India through a path that encompasses Oman and the UAE, thereby avoiding politically sensitive areas.
  • This pipeline presents an opportunity to import gas from various countries like Oman, UAE, Saudi Arabia, Iran, Turkmenistan, and Qatar, each of which possess considerable gas reserves.
  • SAGE has christened this pipeline as the ‘Middle East to India Deepwater Pipeline’ (MEIDP).
• Feasibility and Potential Financial Savings:
  • Positive outcomes were obtained from both technical and financial feasibility studies.
  • The project could potentially lead to annual savings of around ₹7,000 crores compared to importing an equivalent amount of liquefied natural gas (LNG).
• Significance of the Project:
  • The undersea gas pipeline project could bolster energy security, reduce costs, and cater to the rising demand for gas in India's power and fertiliser sectors.
  • It could also aid India's transition to a low-carbon economy.
  • Additionally, it could help increase the share of gas to 15% in the energy basket.
• Cost Comparison with LNG:
  • Compared to LNG, gas pipelines are more cost-efficient for distances up to 2,500-3,000 km due to the high costs linked with gas liquefaction, transportation, and regasification.
  • The proposed pipeline could potentially save $5 to $6 per mmBtu (million British thermal units) compared to volatile LNG prices.

Recent Gas Discoveries in the Region:

• Large gas discoveries in Oman, the UAE, and Saudi Arabia have opened up opportunities for long-term gas supply agreements.
• The Middle East plans to invest over $120 billion to boost gas production by 14 billion cubic feet per day (bcfd) by 2030.