• 4 minutes Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 9 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 17 minutes Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 2 hours Saudi Arabia turns to solar
  • 17 hours Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 1 hour Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 12 hours Could oil demand collapse rapidly? Yup, sure could.
  • 6 hours Corruption On The Top: Netanyahu's Wife Charged With Misuse of Public Funds for Meals
  • 2 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 12 hours Gazprom Exports to EU Hit Record
  • 8 hours U.S. Withdraws From U.N. Human Rights Council
  • 1 hour Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 17 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 12 hours OPEC Meeting Could End Without Decision - Irony Note Added from OPEC Children's Book
  • 11 hours "The Gasoline Car Is a Car With a Future"
  • 10 hours What If Canada Had Wind and Not Oilsands?
  • 23 hours EVs Could Help Coal Demand
  • 5 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 1 day Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
Oil Inches Higher On Strong Crude Draw

Oil Inches Higher On Strong Crude Draw

Oil prices rebounded on Wednesday…

3 Possible Outcomes From The OPEC Meeting

3 Possible Outcomes From The OPEC Meeting

With the OPEC meeting nearing,…

India, Russia Discuss US$25 Billion Gas Pipeline

Modi Putin

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

Oilprice - The No. 1 Source for Oil & Energy News