“An underwater project to bring natural gas directly from the Middle East to India being developed by a global consortium under the leadership of South Asia Gas Enterprises (SAGE), a senior member of the Associated Chambers of Commerce and Industry of India (ASSOCHAM), may be examined for consideration of grant to support the project,” said ASSOCHAM in a communication addressed to Dr M. Veerappa Moily, India’s Minister of Petroleum and Natural Gas.
According to ASSOCHAM, such projects involve geo-political implications owing to fierce global competition to access natural resources such as oil and gas from other countries and international companies, and it is difficult for private companies to conclude them on their own without significant government support, as they involve long-term gas supply sale and purchase contracts.
“One of the important features of this pipeline corridor is that it will completely by-pass Pakistan,” said ASSOCHAM Secretary General Mr D.S. Rawat.
“The concerned pipeline project is planned to be set-up on a common-carrier basis and it would allow gas suppliers and buyers to buy and sell gas on commercial terms and transport it to India after payment of a competitive pipeline tariff to SAGE,” he said.
“Considering the anticipated shortage of natural gas in the future, even the public-sector companies – such as Gas Authority of India Ltd, Indian Oil Corporation, and Engineers India Ltd – are co-operating with the SAGE through arrangements including memoranda of understanding or proof of contact to develop the project,” Mr Rawat said.