The ongoing visit of Oman’s foreign minister Yousuf bin Alawi bin Abdullah is the first from a foreign dignitary since the new government took office on 27 May 2014. One of the topics that will come up for discussion during his visit is an underwater gas pipeline, which will connect India’s west coast to Oman. Rajrishi Singhal, senior geo-economics fellow at Gateway House, comments on the geopolitical and geo-economic dimensions of this project.
The full analysis is available here.
Statement:
“Oman has large gas reserves and underdeveloped gas fields which hold massive potential. Substantial investment will be required for the gas fields, which will be economically viable only after Oman finds long-term, committed buyers.
The demand for natural gas in India—primarily from power generation, and petrochemical, fertiliser and steel manufacturing units, as well as from city gas distribution companies—outstrips domestic supply by a wide margin.
A deep-sea pipeline which connects India’s west coast and Oman could be used for transporting natural gas from not only Oman but also from Iran and perhaps even Qatar. It has the added advantage of being secure compared to an overland structure passing through hostile territory.
India has bold economic ambitions which require fuel to thrive. Oman and India share close bilateral ties; as the second biggest GCC investor in India, Oman is an important economic partner for India in the Gulf. There is a convergence of interests between the two countries and pursuing the construction of a deep-sea pipeline will be favourable for India.”
For more information or interview requests, please contact Reetika Joshi at joshi.reetika@gatewayhouse.in.