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Fox Petroleum proposestobuild Oman–India
Multi-PurposePipelineproject
March 24, 2015
Fox Petroleum Ltd., oneof India’sener...
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Oil and Gas Journal fox-petroleum-proposes-to-

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Oil and Gas Journal fox-petroleum-proposes-to-

  1. 1. Fox Petroleum proposestobuild Oman–India Multi-PurposePipelineproject March 24, 2015 Fox Petroleum Ltd., oneof India’senergy companies, hasproposed to theGovernment of Indiato build theOman–IndiaMulti-PurposePipeline(OIMPP) – adeepwater, transnational, natural gas pipelinesystem that will crosstheArabian Seawith 100% investment from foreign funding. Thecompany estimatesthat theproject can becompleted within 48 monthsand that it isworth USD $5.6 billion with a(+/-) 4% variation. A dual-sized, singlepipelinefrom theOman coast near Ra’sAl Jifan would belinked to Duqm onshoreand from Al Duqm to theIndian coast at Gujarat viaamid- linerecompression station situated on theQualhat Seamount (Murray ridge). Ajay Kumar, chairman and managing director of Fox Petroleum, said, “In thelast few years, deepsea gaspipelinetechnology hasmatured. SinceIndiahasserioussecurity concernswith regard to pipeline projectsover land, adeepseapipelineisprobably themost promising option. This1,600-kilometer OIMPPproject intendsto transport 8 trillion cubic feet of natural gasto Indiaover aperiod of 20 years. Thepipelineisplanned to beabout 1,300 kilometerslong in PhaseI, and 300 kilometersmore to connect Mumbai, laid at adepth of 3,400 metersbelow theseabed. It will connect theMiddleEast Compression Station near Oman with thereceiving terminal near Gujarat. Headded that theestimated cost of thisproject is$5–5.6 billion, and that it can beexecuted in about fiveyears. Fox Petroleum hasarranged all required technical and financial requirementsfor the project, including funding theproject from itsassociatecompanies. TheOIMPPisanticipated to bethefirst of many in acorridor of pipelinesthat will form thefinal leg of amajor energy supply routelinking thetwo countriescrossing thesea; importing LNG isacostly process, but unavoidablebecausethesourcesof gasarefar away. Thiscost can beavoided if gasis imported through pipelinesand then transported acrossthecountry through existing and future- planned pipelinesin India. Geographically, theOman–IndiaPipelineiscomparatively morefeasible becauseIndiaiscloseto thesourcesof natural gasin theMiddleEast and theunderseadistanceisless than 1,300 kilometersif connected to Gujarat coast only. Kumar commented that another reason in favor of thisproject isthelanded cost, which will belesser by $1.5 to $2 per million BTU ascompared to LNG imports. Furthermore, hesaid, thispipelinecould belinked to other natural gassourcesin theMiddleEast and even to Turkmenistan and Iran if need be. 58 4 79 1 141 Page1 of 1 6/1/2015http://www.ogfj.com/articles/2015/03/fox-petroleum-proposes-to-build-oman-india-multi-p...

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