Strait of Hormuz crisis a wake up call! India eyes Rs 40,000 crore subsea pipeline for uninterrupted gas supplies from Gulf

Strait of Hormuz crisis a wake up call! India eyes Rs 40,000 crore subsea pipeline for uninterrupted gas supplies from Gulf
India’s demand for natural gas has been climbing steadily as the country seeks to raise the share of gas in its overall energy basket. (AI image)

As concerns surrounding the Strait of Hormuz intensify, India is fast-tracking efforts to secure uninterrupted gas imports from the Gulf through a direct subsea pipeline. With energy security emerging as a key priority, the government is giving renewed attention to the proposed project linking Oman to India. According to a petroleum ministry official, the pipeline, which is estimated to cost around Rs 40,000 crore ($4.7-4.8 billion), could take between five and seven years to complete if it receives approval.India’s demand for natural gas has been climbing steadily as the country seeks to raise the share of gas in its overall energy basket. Present consumption is estimated at about 190-195 million standard cubic metres per day (mmscmd), while projections indicate demand could rise to nearly 290-300 mmscmd by 2030. LNG imports alone are expected to increase significantly, potentially touching 180-200 mmscmd before the decade ends.Senior officials told ET that the petroleum ministry plans to ask state-owned firms including GAIL, Engineers India and Indian Oil Corporation to prepare a comprehensive feasibility assessment for the project. The government is currently relying on a preliminary study submitted by South Asia Gas Enterprise, or SAGE, a private consortium headquartered in New Delhi.Also Read | ‘Situation isn’t as dire’: Is India’s forex reserves cover enough to defend rupee? Why economists are confident The move underlines India’s vulnerability to disruptions in LNG supplies and fluctuations in global gas prices. It also highlights the gap between India and manufacturing-heavy economies such as China in building long-term energy resilience.If the detailed feasibility study delivers favourable findings, the next step would involve formal discussions between the governments of India and Oman covering gas supply arrangements, financing mechanisms and execution plans.According to an official, a dedicated pipeline from West Asia would provide a more dependable and competitively priced supply of gas while reducing exposure to maritime bottlenecks and dependence on transit nations.

Key Features of the Project

The proposed Middle East-India Deep-water Pipeline (MEIDP) is planned as a 2,000-kilometre underwater network running beneath the Arabian Sea and connecting Oman directly with the Gujarat coastline. The pipeline is expected to transport nearly 31 mmscmd of natural gas.Officials said the alignment would pass through the Arabian Sea via Oman and the UAE while avoiding politically sensitive zones. The project would also enable India to tap gas reserves from countries including Oman, the UAE, Saudi Arabia, Iran, Turkmenistan and Qatar — a region estimated to hold nearly 2,500 trillion cubic feet of gas reserves. At depths reaching nearly 3,450 metres, the pipeline would rank among the deepest subsea gas pipelines attempted anywhere in the world.Recent technical evaluations have reportedly established that the project is achievable due to advances in deep-sea pipeline installation and repair technologies. As part of its submissions to the government, SAGE stated that it has already installed roughly 3,000 metres of test pipeline along the proposed route at a cost of nearly Rs 25 crore to examine seabed conditions.Also Read | Foreign outflow worries ‘overstated’: S&P confident about India amid Middle East crisis; says economy ‘fundamentally strong’ Almost two-thirds of India’s LNG imports passed through the Strait of Hormuz in 2025, making the country heavily dependent on the crucial maritime corridor. In late February, when Iran effectively blocked the passage amid tensions involving the US and Israel, global LNG availability dropped by over 20%, sending prices sharply higher.The disruption in Hormuz exposed India’s susceptibility not only to supply interruptions but also to severe price fluctuations. Beyond the pipeline proposal, policymakers are also raising concerns over India’s limited gas storage infrastructure.Unlike crude oil, the country has almost no strategic natural gas reserves. This leaves India vulnerable during market disruptions, as it lacks the capacity to stockpile low-cost gas for emergencies. The development also draws attention to the contrast between India and China in terms of pipeline connectivity and gas storage capacity. Over the past two decades, China has steadily built multiple overland gas pipeline networks, creating the kind of supply security that helped cushion it from the Hormuz disruption.

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