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India, Russia mull Gas Pipeline Project

Indicating a smart geo-political move, India has floated before Russia a proposal of setting up a direct gas pipeline between the two nations and according to highly placed sources, a joint task force is likely to be set up once details regarding the project are firmed up during Russian President Vladimir Putin's scheduled visit to New Delhi towards the end of the year.

Though still at a very preliminary stage, as no discussions have been held regarding the practicalities of the project (including cost and exact locations), the proposal, sources said has been made keeping in mind the possibilities of the ambitious Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline not coming through and New Delhi keen on seeking cheaper gas imports.

The proposal of setting up a gas pipeline between Russia and India, sources said, was taken positively by Moscow and there are indications that a joint task force is likely to be set up by both the sides when Putin comes visiting during the end of the year. Putin's main agenda during his visit is to strengthen ties with India and market its hydrocarbon products here.

Sources privy to the development, confirmed to The Pioneer that discussions regarding this took place between Petroleum Minister Dharmendra Pradhan and his Russian counterpart Alexander Novak last month on the sidelines of the World Petroleum Congress, which was held in Moscow.

The proposal, they added, was floated by India before Russia, with the aim of facilitating direct gas supply from Moscow as the delays in the TAPI project is likely to lead to massive cost escalations and India is keen on exploring less expensive options of seeking gas while keeping in mind the significant aspect of rapidly changing geo-political situations in the Middle East and Central Asia (pertaining to happenings in Iraq and Afghanistan).

While the proposed pipeline is being seen as a cheaper option by New Delhi, as far as Moscow is concerned, it too is eyeing India as a potential market for selling its gas, especially as in May this year, it successfully inked a gas deal worth $ 400 billion with China. Sources pointed out that with international pressure building on Russia over Ukraine, Moscow is strategically shifting its focus towards the East and the deal with China was a step in this direction.

However, the main problem which both the countries are likely to face is the route for the pipeline. Sources aware of the discussions, said that several options were discussed regarding the route, which included bringing it via Pakistan or China. However considering the fact that TAPI project is already proposed through Pakistan, and considering the delicate relations New Delhi and Islamabad share, bringing it via Pakistan looks difficult.

They further added that extending the proposed gas pipeline between Russia and China (through Russian gas will reach Beijing) to India via the Himalayas or through Myanmar does not look feasible.

In such a scenario, the path for the pipeline is something which seriously needs to be worked out and a proposed route via Iran, Turkmenistan and Kyrgystan is something which both the countries could seriously look at. India on its part will look at the cost aspect also, as it will not only have to purchase the gas from Russia but also finalise a route which is the shortest for transporting the natural resource.

The future of the Indo-Russian gas pipeline project though will rely mainly on which way TAPI proceeds. TAPI project's pace has slowed down as all the four nations have failed to finalise a consortium leader for the project.

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