Tehran is holding negotiations with New Delhi to build a $4.5b undersea gas pipeline from Iran to the Indian west coast, following upon India’s previous rejection of an on-land pipeline passing through the Pakistani territory, reported the Business Standard.

The new 1,400km gas pipeline will extend from the Iranian coast via the Oman Sea and Indian Ocean to Gujarat, meant to carry 31.5 mscm/d, and bypassing the exclusive economic zone (EEZ) of Pakistan. The pipeline is planned to be constructed within two years upon the agreement, Iranian National Gas Export Company’s Managing Director, Alireza Kameli said.

According to Press TV, India’s consortium led by ONGC Videsh Ltd. is also in talks with the Iranian Offshore Oil Company (IOOC) over a $3b investment in the offshore Farzad B gas field development in the Persian Gulf, aimed at producing 1bcf/d in the first phase alone, IOOC CEO, Saeed Hafezi said.

“If we resolve issues related to the contract model and transfer modality or marketing of the product, there will be no other problem left to sign the gas deal with the Indians,” Hafezi explained.

The Indian consortium also includes Oil India and Indian Oil Corporation. The Farzad B field is estimated to hold 12.8tcf of gas reserves.