Financial Daily from THE HINDU group of publications
Monday, Mar 14, 2005
Financial Daily from THE HINDU group of publications Monday, Mar 14, 2005 |
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Infrastructure Industry & Economy - Petroleum India to go ahead with pact for gas supply from Iran — `Investment interest won't be affected' Richa Mishra
New Delhi , March 13 PUTTING to rest apprehensions on the move to ink an agreement with Iran on the import of natural gas through a $ 4.5-billion pipeline transiting through Pakistan, the Ministry of Petroleum and Natural Gas has said that, "India's investment interest will not be affected." Apart from transit worries through Pakistan, fresh doubts have arisen about the project with the US expressing apprehensions about the deal with Iran. The apprehensions emanate from Iran's nuclear programme and the possibility of international intervention. The Minister for Petroleum and Natural Gas, Mr Mani Shankar Aiyar, had confirmed recently said that India had taken note of the concerns expressed by the US. Speaking to Business Line, official sources said, "This agreement will not result in any financial loss for us, if such an intervention happens. The agreement with Tehran will be for the delivery of natural gas on the Indian border. The approach for the agreement will be supply and pay or take and pay. This would ensure that Indian interest is not adversely affected." The Government is also working out alternate mechanisms in case gas supplies from Iran are disrupted for any reason. These include creation of gas storage facilities and sourcing of more LNG from other producers so that Indian companies dependent on the gas supply from Iran are not affected, the source said. It has also been made clear that India would not be associated with the construction, maintenance or operation of the 2,775-km pipeline, 760 km of which fall in Pakistan. There would be broadly two sets of bilateral agreements. In the first agreement, Iran will enter into a pact with India for delivery of natural gas at the Indian border, while the second would be between Iran and Pakistan on how the gas is to be transported to the Indian border. Besides, India will not enter into any agreement with Pakistan and deal only with Iran on the issue. The decision to ink an agreement with Iran follows the Union Cabinet decision mandating the Ministry of Petroleum to enter into a dialogue with gas rich nations such as Iran and Myanmar for import of natural gas through pipeline. The Ministry was also authorised to talk to Pakistan and Bangladesh, whose territory would be used as transit for pipeline. The Minister is expected to travel to Teheran in June this year.
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