Iran sees gas pipeline to India ready by 2012 despite US pressure

New Delhi (Platts)--29Dec2005

Iran on Thursday said it was committed to implementing an ambitious plan
to build a natural gas pipeline from Iran to India via Pakistan and that the
project is likely to be completed by 2012 despite US political opposition. 

     The earlier date for completion, according to Indian officials, was 2010.
"We are committed to implement the project," Iran's Deputy Oil Minister for
International Affairs Mohammed Hadi Nejad-Hosseinian told reporters.

     "I don't see India and Pakistan yielding to the US pressure. It will be a
peace pipeline to the region," Hosseinian said at the end of a two-day Joint
Working Group meeting that India hosted to discuss the pipeline project. 

     The JWG was set up to work out the technical and commercial details of
the 2,775km (1,734 mile) natural gas pipeline, 750km of which would pass
through Pakistan. 
     
     GAS PRICE, PROJECT STRUCTURE DISCUSSED

     During the JWG meeting, Indian and Iranian officials discussed issues
related to gas pricing and as to who would build and operate the pipeline. 

     Hosseinian told reporters that one of the options discussed was a
proposal to let the three countries separately build the pipeline in their
territories and be responsible for the gas movement in their respective
countries. 

     "If we choose this option there will be no US sanctions," he said. 

     India reportedly wants an international consortium to be vested with the
responsibility of building and operating the pipeline. 

     "It was agreed that this matter would be further pursued at the
tripartite meeting of the Working Groups in Tehran," a joint press statement
said adding the gas price issue too would be discussed in subsequent meetings.

     TRIALTERAL MEETINGS TO BE HELD

     The two countries agreed to convert the bilateral talks into trilateral
ones, although one more bilateral Iran-India JWG meeting would be held in
Tehran early next year.  

     Until now, bilateral talks were held separately between India-Iran,
India-Pakistan and Pakistan-Iran over the pipeline project issues. The first
of the trilateral meeting will be held in January in New Delhi involving
technical experts from the three countries and outside experts, said a joint
press statement released after the meeting. 

     In February, the JWGs from Iran, India and Pakistan would meet in Tehran
and follow up with the ministerial meeting of the three countries in March in
Tehran, the statement said. 

		--Shiva Lingam, newsdesk@platts.com

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