A $4.5 billion pipeline that will carry 31.5 million standard cubic meters of gas per day between Iran and India has been proposed.

Tehran and New Delhi are still conducting discussions to build the undersea gas pipeline that will begin in Iran, pass through the Oman Sea and reach Gujarat State in western India via the Indian Ocean.

Managing Director of National Iranian Gas Export Company (NIGEC), Alireza Kameli, stated: “Negotiations are under serious consideration.”

The project is expected to be built within two years once all approvals are made.

Kameli also said Iran has already been in discussions with New Delhi-based South Asia Gas Enterprise Pvt Ltd (SAGE) to build the 1,400km pipeline.

According to the report by the Economic Times, SAGE will lay the 1,400-km pipeline bypassing the exclusive economic zone (EEZ) of Pakistan.

“SAGE will not be buying gas from Iran. It will lead an international consortium for building the pipeline,” SAGE Director Subhodh Kumar Jain said.

India has not taken part in the talks on the 1,036 km Iran-Pakistan-India gas pipeline since 2007, citing security and commercial concerns.

“These are all geopolitically sensitive projects, but now the time has come because Iran sanctions are going away,” said  Kumar.

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