Diplomatist Magazine Oman 2018 - Special Report

pipeline project is not only technologically and economically feasible, but also has the potential to deliver gas to the Indian market at competitive rates. ASSOCHAM also sees a potential role for Oman as an equity partner in the estimated $5.2 billion project, given its strategic location astride the pipeline. “Equity contribution can come from Iran, Oman and India. Apart from private investment, long term soft loans can be accessed from Indian banks, multilateral agencies, export-import banks and also foreign currency borrowing,” note the authors of the report. The pipeline is expected to start from Chabahar Port on Iran’s southern coast, and terminate near Porbandar (Gujarat) on India’s west coast or, alternatively, onwards under the Arabian Sea towards India. The latter option would mean that it would be integrated with Oman’s existing gas network and also include a connection with Iran once the proposed gas link between Iran and Sohar is completed. Besides serving as a starting point or transit hub for Iranian gas supplied to India, Oman can also capitalise on this link to channel any surplus volumes of its own into the network, the report noted. “It can also include Oman which is a gas rich country. Such a pipeline (MEIDP) will enable Oman and Iran to have ready access to a growing gas consuming market.” Another project, the Oman India Fertiliser Company (OMIFCO) in Sur, Oman, is a $969 million joint venture between IFFCO and KRIBHCO of India and the Oman Oil Company (OOC) for manufacturing of urea and ammonia. A number of Indian companies have participation in the Oil and Gas Sector in Oman. Indian Oil has acquired a 17 percent stake in Oman’s Mukhaizna oil ﬁ eld. In the past, Reliance Industries Ltd. and a consortium of Oilex, Videocon, GAIL, HPCL and BPRL were engaged in the development and exploration of oil blocs. Indian companies like BHEL, Universal Erectors Ltd., Shiv Vani Oil & Gas, Dodsal and DewanchandRamsaran have worked as subcontractors in Oman’s oil & gas ﬁ elds. Many Indian companies were also engaged in civil-electrical works in the oil ﬁ elds. Indian Oil tanking, a JV between Indian Oil Corporation Ltd. and Oil Tanking GmbH, was engaged in building crude storage tanks in Sohar. ONGC has also undertaken some activities in Oman in the ﬁ eld of training, consultancy and services in the upstream hydrocarbon sector in Oman. Indian companies in renewable energy sector in Oman: Oman plans to implement a number of solar and wind-based electricity projects by 2025, which will yield between 2,500 and 3,000 MW of power capacity. Oman Power and Water Procurement Company (OPWP), the Sultanate’s state-owned utility ﬁ rm, plans to build Oman’s ﬁ rst utility-scale solar independent power project (IPP) in Ibri with a capacity to generate 500 megawatts of electricity. This is part of a larger initiative to enhance the contribution of renewable energy in the total energy mix to 10 per cent by 2025. As there is growing demand for renewable energy in Oman, there is scope for Indian companies to supply equipment required for the generation, storage and transmission of power generated from renewable sources, especially solar and wind. Further, Indian companies can provide consultancy services. The Indian Embassy in Oman has been encouraging Indian companies to participate in providing consultancy services for the execution of power projects in Oman. International Solar Alliance In another move towards consolidating the bilateral partnership in the area of renewable energy development and use, Oman has recently agreed to join the India-led International Solar Alliance (ISA), which aims to serve as a global platform for cooperation among solar resource rich countries for increasing the utilisation of solar energy. The joint statement during PM Modi’s visit to Oman stated that ‘’the ISA provides a useful platform for countries with rich potential of solar energy to work together to tap their full potential.’’ The Prime Minister offered to share India’s experience and capabilities with Oman in the development of its renewable sources of energy, such as solar and wind power, etc. Possessing converging interests and needs in the energy sector, India and Oman have made the timely decision to join together on the path to a future beset with umpteen possibilities and opportunities that promise national and regional growth and progress. * Priti Prakash is Editor, NewsFnF, news online. She is a Foreign Affairs Analyst, Political commentator, and Travel Blogger, and has been engaged in mainstream journalism for the last 20 years. 2018 • INDIA-OMAN • 33

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