Iran assures India, Pakistan of pipeline gas by 2011

By IANS

New Delhi : In a step forward in the realisation of an ambitious gas pipeline from Iran to India via Pakistan, Tehran's special envoy Hojjatollah Ghanimifard Thursday assured the supply of gas from 2011.


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He also invited on his country's behalf Indian Prime Minister Manmohan Singh and Pakistan President Pervez Musharraf to Tehran to sign the $7.4 billion deal as he hoped to resolve some "minor" issues that remain by the end of July.

"All major elements have been thrashed out," India's Petroleum Secretary M.S. Srinivasan told reporters here as he emerged from the talks with his Pakistan counterpart Ahmad Waqar and Ghanimifard.

"We are assuring that 30 million cubic metres per day of gas will be provided to both India and Pakistan each and will start off by 2011," Ghanimifard added as the three sides geared up for the next round of talks in Pakistan next month.

The three countries met here for the two-day trilateral talks on the 2,300-km pipeline and held extensive discussions to resolve all differences that have prevented the project, first proposed way back in 1990, from becoming a reality.

The project, also called the 'peace pipeline' but frowned at by Washington, will supply 30 million cubic meters of gas each daily to India and Pakistan. The gas will be delivered at a chosen point on the India-Pakistan border.

India and Pakistan had reached a broad agreement on the transportation fee that is payable to Islamabad for their ambitious $7.4 billion gas pipeline project from Iran even as Tehran asked for a re-look on the price of gas.

"We have agreed on the principals of the formulae under which the transportation fee will be computed," a senior official from Pakistan had said Thursday. "The fee will depend on the cost of transportation infrastructure."

But the two countries have yet to reach an agreement on the transit fee.

Pakistan has been demanding a transit fee for the whole stretch of the pipeline from Iran to the Indian border. But India feels it should only pay for the extension of the project to its border since Pakistan will also use the pipeline.

The two sides felt this matter could be left to their political leadership to decide.

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