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Iran mandates BHP to study Indo-Iran pipeline |
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Iran has mandated BHP of Australia to study the possibility of constructing a gas pipeline from South Pars gasfield in Iran to India across Pakistan. "National Iranian Oil Company (NIOC) has appointed BHP of Australia for a feasibility study of an onland gas pipeline from southern Iran to India’s Gujarat via Pakistan," industry sources said. Though India initially favoured the offshore route because it was somewhat apprehensive on the continuity of gas supply if it passed onshore through Pakistan, Iran has been pressing for the onland pipeline because of the heavy investments involved in a deep water pipeline. Pakistan is said to be supporting the route onshore as it is keen to capitalise on the transit fee it would get. Iran has, in-principle, agreed to Pakistan taking out gas from the proposed pipeline for its own use as the gas is transported to India across the country, sources said, adding Pakistan would also be allowed to inject its own exportable gas for sale to the international market that is India. Islamabad would earn about $ 580 million transit fee from this 2,670-km long and 48-inch diameter, 3.2 billion dollar gas conduit. While the Iran-India pipeline could take up to four years to build, BHP has been asked to submit its report in a year’s time, sources added. According to the plan, the proposed pipeline would connect Assaluyen gas field in southern Iran to the Gas Authority of India Ltd’s (GAIL) HBJ pipeline in Gujarat. It would have an intermediate focal point at Multan, from where Pakistan would take out or put in gas, sources said. Last year, Iran had engaged Italy’s energy giant ENI for working on a feasibility study for the construction of an offshore gas pipeline from Iran to India, sources said. Though the study has not been completed, NIOC is of the opinion that a deepwater Iran-India pipeline would entail massive investment and pose major technical challenges, among which would be passing the pipe through water up to 3,000 meters deep. There is no example of success of a deep water pipeline business, and Iran is anxiously waiting for the results of the world’s first deep water pipeline being constructed in black sea, sources said. The pipeline in the Black Sea is only 2,000 meters deep, which is considered a hugely demanding engineering feat by gas transportation experts, they added. |
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Dated 11th June 2001 |
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