• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 7 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Revisiting: "The U.S. Grid Isn’t Ready For A Major Shift To Renewables" from March 2021 by Irina Slav at OILPRICE
  • 12 hours What China is Learning from Russia's War in Ukraine and its Consequences
  • 5 days How cheap Chinese tires might explain Russia's 'stalled' 40-mile-long military convoy in Ukraine
  • 1 day Failure To Implement Russian Oil Ban Could Send Oil Crashing To $65
  • 3 days Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
Is The Global Debt Bubble About To Burst?

Is The Global Debt Bubble About To Burst?

The global economy is in…

How Russia Has Revived NATO

How Russia Has Revived NATO

Putin now claims that he…

India, Russia Discuss US$25 Billion Gas Pipeline

India and Russia are studying the construction of a gas pipeline to transport Russian gas from Siberia to India, over 2,800-3,700 miles. The value of this giant infrastructure project is estimated at up to US$25 billion. A memorandum of understanding was signed by state company Engineers India Ltd. and Gazprom on Saturday.

The length of the pipeline would vary depending on the route that will be chosen, should the two nations agree to go ahead with the project. If the partners choose the route through the Himalayas and into northern India, it will be the shortest one.

The two other alternatives are building it through Central Asia, Iran and Pakistan, to western India, or – the longest route – through China and Myanmar. It’s the longest route that has been estimated to cost the US$25 billion.

There is, however, an alternative to a Russia-India pipeline, and this is a project for the transportation of Iranian gas via Pakistan into India. This pipeline has been estimated to cost less than the one from Russia, and it’s likely that Iran will do its best to convince India that its pipeline is the better choice. On the other hand, given long-standing tensions between India and Pakistan, the former may be less willing to depend on gas-carrying infrastructure that passes through the latter.

According to Engineers India, the transportation costs of the Russian gas will be US$12 per million British thermal units, although other industry experts mention US$4 per mmBtu as a more realistic cost.

This compares with less than US$1 per mmBtu for the Iran-Pakistan-India pipeline and US$2 per mmBtu for another pipeline that is already in development: the Turkmenistan-Afghanistan-Pakistan-India pipeline, funded by the Asian Development Bank. TAPI will carry 33 billion cubic meters of natural gas from Turkmenistan to Afghanistan, Pakistan and India.

The news about another major Russian-Indian project comes days after Rosneft announced it has teamed up with global commodities trader Trafigura and an investment fund, UCP, to acquire 98 percent of India’s Essar Oil.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News