The Hindu Business Line : Change in govt won't affect gas policy: Iran

The Minister for Petroleum and Natural Gas, Mr Mani Shankar Aiyar, flanked by Iran's Deputy Oil Minister, Mr M.H. Nejad Hosseinia (left), and the Petroleum Secretary, Mr S.C. Tripathi, in the Capital on Wednesday. — Kamal Narang

New Delhi , Aug. 3

THE Iranian Deputy Oil Minister, Mr M.H. Nejad Hosseinian, currently in the country to carry forward discussions on the proposed Iran-Pakistan-India gas pipeline, has said the change of Government in Iran later this year was unlikely to affect the gas policy of that country.

He was also hopeful that security concerns on the pipeline project would be addressed by all parties and the project framework would be finalised soon to enable its implementation from 2006.

After meeting the Union Petroleum Minister, Mr Mani Shankar Aiyar, here today, ahead of the first joint working group meeting between the two countries, Mr Hosseinian told presspersons, "The security issue has been discussed right from the beginning of the project. Different groups are working in different ways to address this and we are sure some solution for that would be created in the project structure."

Mr Hosseinian is leading a high-level team for the first joint working group meeting between the two countries, while the Petroleum Secretary, Mr S.C. Tripathi, is leading the Indian team.

Frequent talks have been going on between the two countries at the technical level to clear any legal, commercial, financial and technical issues related with the gas pipeline.

The project is seen as being crucial to the interests of both India and Pakistan for meeting their energy security.

While agreeing that gas pricing could be an issue, the Iranian Minister said for any successful transaction, the price had to be viable for both the buyer and the seller. "Both sides should agree on that," he said.

He, however, clarified that gas pricing had not been discussed so far.

The two-day talks will finalise the roadmap and structure of the project to be able to move towards implementation from 2006, said Mr R. Javedi, Managing Director of National Iranian Gas and Export Company.

The next round of bilateral talks between Iran and Pakistan will follow the talks in New Delhi, possibly by September-end.

When asked on the international crude scenario, with crude prices pushing past $62 per barrel, the Iranian Minister said the trend was due to the demand for oil being higher than the supplies.

"If the demand rises more and there is not enough supplies, then experts expect the prices to reach $70 per barrel by the year-end. We also think it may, given the current demand and supply position."

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