The South Asia Gas Enterprise (SAGE) has proposed a $5-billion undersea gas pipeline connecting the United Arab Emirates (UAE) and Gujarat, India. This article explores the potential benefits of this project, including its impact on energy security, cost savings, and India’s transition to a low-carbon economy. The proposed UAE-Gujarat Gas Pipeline, also known as the Middle East to India Deepwater Pipeline (MEIDP), has significant relevance to the IAS exam, particularly in the geography, economy, and international affairs segments.
Route and Options for Gas Import:
The UAE-Gujarat Gas Pipeline aims to transport 31 million metric standard cubic meters per day (mmscmd) of gas over a 2,000 km corridor for a duration of 20 years. The pipeline route will connect the Middle East and India, bypassing sensitive regions and providing a secure means of energy transportation. Furthermore, this project offers the opportunity to import gas from Oman, UAE, Saudi Arabia, Iran, Turkmenistan, and Qatar, countries with substantial gas reserves.
Feasibility and Potential Savings:
Thorough technical and financial feasibility studies have been conducted, and the results indicate a positive outlook for the project. The UAE-Gujarat Gas Pipeline has the potential to save approximately ₹7,000 crores annually compared to importing a similar quantity of liquefied natural gas (LNG). This cost advantage arises due to the more favorable economics of gas pipelines over LNG for distances up to 2,500-3,000 km. The high costs associated with gas liquefaction, transportation, and regasification make gas pipelines a more cost-competitive option.
Importance for India:
The proposed undersea gas pipeline holds significant importance for India in multiple aspects:
- Enhancing Energy Security: By diversifying gas sources and reducing dependence on a single supplier, India can enhance its energy security. The UAE-Gujarat Gas Pipeline opens doors to multiple gas-rich countries, reducing vulnerability to supply disruptions.
- Cost Reduction: Compared to LNG prices, the pipeline has the potential to save $5 to $6 per million British thermal units (mmBtu). This cost advantage is crucial for the power and fertilizer industries in India, which have a growing demand for gas.
- Transition to a Low-Carbon Economy: The gas pipeline aligns with India’s efforts to transition to a low-carbon economy by increasing the share of gas in its energy basket. Gas is a cleaner-burning fuel compared to coal and oil, contributing to reduced emissions and improved air quality.
Regional Gas Discoveries:
Recent gas discoveries in Oman, the UAE, and Saudi Arabia have presented a favorable opportunity for long-term gas supply agreements. These countries are committed to investing over $120 billion to boost gas production by 14 billion cubic feet per day (bcfd) by 2030. The proposed UAE-Gujarat Gas Pipeline can serve as a conduit for accessing these abundant regional gas reserves, ensuring a stable and sustainable gas supply for India.
Important Points:
- 💡 Proposed UAE-Gujarat Gas Pipeline:
- Connects UAE and Gujarat through an undersea pipeline
- Aims to transport 31 mmscmd of gas over 2,000 km for 20 years
- 🌍 Route and Options for Gas Import:
- Bypasses sensitive regions, ensuring secure energy transportation
- Offers the opportunity to import gas from Oman, UAE, Saudi Arabia, Iran, Turkmenistan, and Qatar
- 💰 Cost Savings and Feasibility:
- Potential savings of ₹7,000 crores annually compared to LNG imports
- Positive results from technical and financial feasibility studies
- 🛢️ Importance for India:
- Enhances energy security and reduces dependence on a single supplier
- Reduces costs for India’s power and fertilizer industries
- Contributes to India’s transition to a low-carbon economy
- Increases the share of gas to 15% in the energy basket
- 🔄 Cost Comparison with LNG:
- Gas pipelines more cost-competitive for distances up to 2,500-3,000 km
- Potential savings of $5 to $6 per mmBtu compared to volatile LNG prices
- 🔎 Regional Gas Discoveries:
- Recent large gas discoveries in Oman, UAE, and Saudi Arabia
- Opportunity for long-term gas supply agreements
- Middle East investing $120 billion to boost gas production by 14 bcfd by 2030
Why In News
The South Asia Gas Enterprise (SAGE) has put forward a groundbreaking proposal for a $5-billion undersea UAE-Gujarat gas pipeline, aiming to foster enhanced economic cooperation between the two regions. The potential benefits of this ambitious project extend beyond economic gains, as it holds substantial geopolitical significance and opens new avenues for collaboration in the domains of energy security and regional integration
MCQs about The Proposed UAE-Gujarat Gas Pipeline
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What is the primary purpose of the proposed UAE-Gujarat Gas Pipeline?
A. To connect Oman and India for gas transportation
B. To bypass sensitive regions and enhance energy security
C. To import liquefied natural gas (LNG) from Qatar
D. To reduce gas prices in the Middle East
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According to the essay, how does the UAE-Gujarat Gas Pipeline contribute to India’s transition to a low-carbon economy?
A. By importing gas from Saudi Arabia and Iran
B. By reducing costs for the power and fertilizer industries
C. By increasing the share of gas in India’s energy basket
D. By investing in renewable energy sources
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What advantage do gas pipelines have over liquefied natural gas (LNG) for long-distance transportation?
A. Lower costs associated with regasification
B. More availability of gas reserves
C. Higher transportation capacity
D. Reduced volatility in prices
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What recent development has presented an opportunity for long-term gas supply agreements?
A. Gas discoveries in Oman, UAE, and Saudi Arabia
B. Investments in renewable energy sources
C. Decreasing global demand for natural gas
D. Shale gas exploration in India
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