India’s Rs 40,000 Crore Oman-India Deep-Sea Gas Pipeline: How Will It Solve Hormuz Problem?

India revives its Rs 40,000 crore deep-sea Oman-India pipeline plan to reduce dependence on the Strait of Hormuz amid regional tensions.

By: Sudeep Singh Rawat
Last Updated: May 14, 2026 14:35:55 IST

Since the conflict in West Asia, the world has faced a disrupted supply chain, and India is no exception. India meets around 90 per cent of its crude oil requirements through imports, and much of it passes through the Strait of Hormuz, which has been affected by regional tensions linked to the US-Iran conflict.

Due to heightened tensions in the Middle East, crude oil prices have hovered around $105 per barrel, leading to a faster outflow of foreign exchange reserves.

As the conflict shows no sign of ending soon, India has revisited its decade-old plan for the Middle East-India Deep-Water Pipeline (MEIDP). If this project becomes a reality, it could mark a major milestone for the country by significantly reducing its dependence on oil and gas tankers.

What Is the India-Oman Subsea Gas Pipeline?

Under this long-standing proposal, India plans to develop a 2,000-kilometre undersea pipeline infrastructure connecting Oman’s coast directly to Gujarat on India’s west coast.

The project is expected to cost around Rs 40,000 crore (approximately $4.7–$4.8 billion). It is likely to take five to seven years to complete, as state-run PSUs such as GAIL, Engineers India Limited, and Indian Oil Corporation are preparing feasibility reports.

According to reports, the pipeline will operate at a depth of around 3,450 metres below sea level, making it one of the world’s most technically challenging undersea pipeline projects.

To assess technical feasibility, SAGE has already laid 3,000 metres of test pipeline along the proposed route at an estimated cost of Rs 25 crore. The test aims to study challenging seabed conditions.

India-Oman Pipeline: How Will It Help India?

Regional tensions have disrupted shipping routes in the Strait of Hormuz, affecting India’s import of oil and natural gas from Gulf nations. Oil tankers bound for India have faced delays due to uncertainty in the region.

Dependence on the Strait of Hormuz could be reduced significantly once the proposed pipeline becomes operational. It would provide access to gas supplies from countries such as the UAE, Saudi Arabia, Iran, Turkmenistan, and Qatar.

This could transform the MEIDP into a broader energy corridor, enabling gas transport from multiple suppliers through a single infrastructure network.

The project is expected to supply 31 million standard cubic metres per day of steady and competitively priced gas directly to Gujarat. This would help reduce geopolitical risks and strengthen energy security.

India’s Gas Dependency

India depends on Gulf suppliers for around 80–85 per cent of its LPG imports, much of which passes through the Strait of Hormuz. Since there is no clear timeline for the resolution of regional tensions, supply chain disruptions may continue to impact India.

The situation highlights concerns about energy security, especially as India does not maintain significant strategic gas reserves.

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