India-Pakistan sign gas pipeline deal

India and Pakistan signed a deal today allowing them to share natural gas from a field in Iran through a proposed $7.4 billion pipeline, reported Reuters citing Pakistan's Dawn newspaper.

The pipeline is scheduled to run from Iran to India via Pakistan and the gas transfer deal would last 30 years.

After meeting with India's Natural Gas Secretary M.S. Srinivasan yesterday, Ahmad Waqar, secretary in Pakistan's Petroleum Ministry, told reporters that the two countries will equally share 2.1 billion cubic feet of gas pumped daily in the first phase of the project starting 2011.

Iran's Islamic Republic New Agency's (IRNA) yesterday reported that the price formula for the country's gas export would be announced after a tripartite agreement due to be reached between the three countries, according to Iranian oil ministry official Hojjatollah Ghanimi-Fard.

"To my knowledge, officials of Indian government [ministers of foreign affairs or oil] did not announce any formula so far," he said.

Pakistan has agreed in principle to the formulation of transportation costs involved in bringing the gas to India through Pakistan, according to Mr. Waqar. "We agreed with India [on the formulation]. However, final tariff[s] will be based on actual technical and financial inputs to be worked out by officials in coming weeks," he was quoted as saying by Press TV.

According to the report, Mr. Srinivasan agreed that the two sides differ on the transport costs and transit fee that India would have to pay Pakistan for using its territory. Compared to other gas transfers along similar distances, Pakistan's proposed tariff for the deal was 2.5 times higher.

Pakistan also wants to apply a 57 cents transit fee per million British thermal units (Btu) of gas, while India said it will only pay 15 cents per million Btu.

Fattah Biatani, head of the marketing and sales departments of the National Iranian Gas Export Company (NIGEC) and Iran's observer to the two-day talks taking place in Islamabad, said the two countries had "fruitful discussions," and added that Iran and Pakistan are both determined to implement the project despite pressures from outside the region.

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READERS' COMMENTS

IPI Gas Pipeline Deal
Posted by Tashfin, Pakistan on Friday 2 March 2007 at 11:20 UAE time


I have in my small life failed to interpret the Indian thinking and mentality. Whatsoever one might propose or put forward, may it be peace, trade, dialogue or pipeline, there are always eyebrows raised and the obvious question of intent and fear. This shows how much far away india is from us on mutual issues. They would always want to step aside or walk away from the table. Have you ever thought of working things out!!! That I am sure iz not new etall. Other than that, One need to change the attitude towards thy neighbour and also should try not to gauge the human intention of growing together within boundaries of peace and harmony, and ofcourse better relations with in our peoples who by the way would be less than bothered if they have fuel in their homes and cars and day to day life.

Gas Pipeline
Posted by Manav, New Delhi / Dubai, India on Tuesday 27 February 2007 at 11:25 UAE time


Ok, so the pipeline will give India the gas to fuel the economic drive, Pakistan also needs energy to fuel the development, EMAAR is building properties in PAK, do you really think that water, gas and electricity for these huge construction projects undertaken can be fullfilled by the existing suppllies once they are complete. I don't think so, In fact if India stops buying the maintainance of the pipeline will be such a huge cost that the pipeline will no longer be profitable. Of course the political upheavels in pakistan are a cause of concern, in the end however Pakistan will only harm itself and it's growth if there are problems in the pipe line at a later date.

No Gas Pipeline Deal with Pakistan
Posted by Jai Prakash, Delhi, India on Monday 26 February 2007 at 19:13 UAE time


We all know the history of pakistan.It never wants to give gain to the indian counter part.India needs energy but it does bot mean that we have to accept whatever be proposed by pakistan.If we go out of boundry then it will be going to effect india.Iran is under pressure under world politics. In this present time , it is not going to be good to have deal with Iran and pakistan. If blackmail us later then what will we do. We are going to suffer not pakistan.India needs a lot of energy for its growing economy . We must take care of this and start exploring our own reserves then investing money in wrong deal with pakistan. We can never rely on pakistan and our past history tells the truth. So , in my openion india must quit from this deal without making loss .

India-Pakistan
Posted by Mohammad, Ilford, UK on Monday 26 February 2007 at 15:29 UAE time


Earn and share and get the benefits whether they are small are huge makes no difference. United you can achieve many objectives and alone you are under a great threat. Its very wise of three countries to conclude an agreement which will create job opportunities and also bring them closer. All the best

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