Iran, Pakistan begin gas pipeline talks, India to join in: report

Singapore (Platts)--21May2006

Officials from Pakistan and Iran met in Islamabad Sunday to discuss
issues like pricing, trilateral framework and appointment of consultants to
carry out feasibility studies over the planned Iran-Pakistan-India gas
pipeline project, Indian news agency PTI reported. An Indian delegation would
join the talks Monday, it said.
The high-level talks over the $7-billion pipeline project was the second
time in less than a month that the two sides met to discuss the 2,775-km
pipeline, despite stiff opposition from the US.
The talks were held between Iranian Deputy Oil Minister Mohammad-Hadi
Nejad Hosseinian and Pakistan Petroleum Secretary Ahmed Waqar, PTI said.
Hosseinian, who held talks with Indian officials at the beginning of this
month, said India was an integral part of the IPI. His comments came after
Pakistan agreed to increase its offtake of gas from the pipeline by over 30%,
which would warrant a second pipeline to be laid for India.
The talks would convert into a trilateral affair with Indian Petroleum
Secretary M S Srinivasan, heading a 10-member delegation, joining the two-day
parleys Monday.
Officials said the talks would mainly focus on pricing and appointment of
consultants to conduct feasibility studies and a trilateral framework, PTI
said. The meeting would discuss whether a separate pipeline needs to be laid
for India in view of Pakistan scaling up its demand.
The gas pipeline is expected to originate at Assaluyeh, the landfall
point of Iran's South Pars gas, and travel through Pakistan to reach India's
northwestern border. Its transmission capacity is expected to be around 150
million cubic meters/day (5.29 billion cu ft/day), with India buying nearly
two-thirds of the gas and Pakistan the remaining third.
Indian oil minister Murli Deora, speaking to reporters before starting
talks with Hosseinian earlier this month, had said New Delhi will not be
influenced by the US regarding its participation in the pipeline project.
The US, which is leading a UN Security Council effort to get Iran to halt
its uranium enrichment program, frowns upon foreign investment in Iran's
energy sector.

 

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