I've attempted to use a distortion mesh but that may not be the way to go because I'm going to use this texture with sprites.
Does anyone have a good idea about how to go with this? The idea is to simply skew the texture and clip it to visible side, then it'll be just like any other 2D texture.
HGE is 2D-oriented, at most you could simulate something like a sphere, in an ugly way. Best if you extract a pointer to D3D8 (or 9) Device from HGEImpl class (in HGE source) and call DirectX 3D drawing commands directly, to display it as a 3D model with lighting.
You'd be better off doing this in a 3D modeling program, placing your texture onto a sphere. Then render the results to an image format and just load that into HGE as a texture.