Monday, 30 November 2015

Middle East to India deepwater pipeline: How does it turn out to be cheaper?

How does a deepwater pipeline become cheaper than LNG?
8According to SAGE, this is essentially because there are no liquefaction and regasification cost involved.
8That knocks off around $3/mmbtu in liquefaction cost and $1/mmbtu in regasification cost.
8The company assumes a transportation cost of $2.25/mmbtu for its deepwater pipeline in comparison to LNG ferrying cost of 0.5/mmbtu from Iran, $1/mmbtu from other parts of Asia and $2.25/mmbtu from the US.
8It is only with the onland pipeline from Iran that there are no other charges except a transportation cost of $2.35/mmbtu which makes it the cheapest option.

For more details visit indianpetroplus.com

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