New Delhi, Sept 22: After eight years of studies and about Rs 330 crore spent, the 1.8 billion dollar Oman-India natural gas pipeline project for import of natural gas from Oman is being shelved due to lack of adequate gas reserves. Petroleum ministry has moved a cabinet note for formally closing the Oman-India natural gas pipeline project, official sources said here.
The Cabinet Committee on Economic Affairs (CCEA) had approved on September 22, 1994, the proposal for Oman-India natural gas pipeline project for import of natural gas from Oman. Oman Oil Company (OCC) was to supply 56.6 million cubic metres per day of natural gas through the pipeline from Oman to India.
Occ sunk 70 million dollars while gas authority of India Ltd (GAIL) spent Rs 110.15 lakh on preliminary studies only to conclude that "technical feasibility of the project could not be established."
Facing a deficit of close to 50 million cubic metres per day, India has been exploring options of importing natural gas through pipelines and in the form of Liquefied Natural Gas (LNG) through ships.
Sources said the Joint Working Group (JWG), comprising representatives of GAIL and OCC formed to carry out further studies, did not make any further progress due to lack of funding and lack of interest from the Omani side.
Detailing reasons for closure of the project, the cabinet note states that adequate gas reserves were not earmarked for it and OCC was not willing to fund the entire project. Bureau Report