India's Hormuz hedge: 2,000-km deep-sea Oman gas pipeline is back in focus; What we know

The crisis in West Asia has revived interest in a project that has remained on the drawing board for more than three decades: a nearly 2,000-km deep-sea gas pipeline connecting Oman directly to Gujarat.

Estimated to cost around ₹40,000 crore, the proposed Oman-Gujarat Deep-Sea Gas Pipeline is being seen by some policymakers and energy experts as a potential way to reduce India's vulnerability to disruptions in the Strait of Hormuz, one of the world's most important energy chokepoints.

The project has been studied repeatedly over the years but never moved beyond the planning stage because of high costs, technological challenges, and questions over commercial viability. Now, with geopolitical tensions once again raising concerns over energy security, the proposal is attracting fresh attention.

Why is the project back in focus?

The immediate trigger is the closure of the Strait of Hormuz due to the war in West Asia.

The Strait of Hormuz connects the Persian Gulf to the Arabian Sea and serves as one of the world's most critical energy routes. Roughly one-fifth of global oil shipments pass through the narrow waterway.

The current disruption has sent oil and gas prices soaring, increased shipping costs, and created uncertainty across global supply chains.

India is particularly exposed. The country imports about 60 percent of its LPG consumption, and out of these imports, about 90 percent come through the Strait of Hormuz.

The country imports about 85% of its crude oil requirements and depends heavily on overseas supplies of natural gas, much of which originates in the Gulf region.

This crisis has highlighted a key concern: what happens if Hormuz is disrupted or becomes inaccessible for an extended period?

That question has revived interest in alternatives capable of providing more reliable energy supplies.

What is the Oman-Gujarat pipeline?

The proposed project, often referred to as the Middle East-India Deepwater Pipeline, would transport natural gas directly from Oman to Gujarat through an underwater pipeline stretching nearly 2,000 kilometres across the Arabian Sea.

Unlike liquefied natural gas (LNG), which must be liquefied, shipped by tanker and then regasified upon arrival, gas delivered through a pipeline flows directly from source to destination.

Supporters argue that this could provide a more stable supply route while reducing exposure to disruptions affecting maritime trade. The pipeline would also create a direct energy corridor between India and Oman.

Why is it considered unique?

Its depth.

Parts of the proposed route are expected to lie more than 3,000 metres below sea level, making it one of the deepest subsea pipeline projects ever contemplated.

Such depths are far greater than those encountered in most offshore energy projects and would require advanced engineering and specialised construction techniques.

According to project proposals, transportation costs could be around $2-$2.25 per MMBtu, although actual costs would depend on financing arrangements, construction expenses, and future gas prices.

A project three decades in the making

The idea of connecting Oman and India through an undersea pipeline dates back more than 30 years.

Over that period, multiple studies examined its feasibility. However, earlier attempts struggled because technology was less advanced, costs were high, and investors were unconvinced about the economics.

SAGE (South Asia Gas Enterprise), which has long promoted the project, says it has conducted technical and financial assessments as well as seabed surveys along the proposed route.

According to recent reports, the Petroleum Ministry has asked state-run firms, including GAIL, Engineers India Ltd, and Indian Oil Corporation, to prepare a detailed feasibility report based on a pre-feasibility study submitted by SAGE.

A favourable assessment could open the door to formal discussions with Oman on gas supplies, financing, and implementation.