The Hindu Business Line : GAIL may participate in Iran-Pak-India pipeline

A senior GAIL executive told Business Line that a number of options for import of gas from Iran were being examined, keeping in mind safety, security and specific commercial advantage if any by remaining only a buyer. Therefore, the option of India's equity participation in the pipeline consortium, possibly through GAIL, remains open.

The Government has decided that for the international project, GAIL and Indian Oil Corporation (IOC) would be the nodal agencies for entering into commercial arrangement with National Iranian Gas Export Company (NIGEC) and any other commercial entity decided by the Iranian Government for export of natural gas from that country.

India has also taken a decision that domestic companies would remain buyers of natural gas from Iran and title and risk of the imported natural gas thus would be transferred to the domestic companies at the delivery flange within the local territory.

Meanwhile, GAIL has also kicked off the process of selecting technical and legal consultants for the pipeline project. The GAIL executive told Business Line that the process of short-listing international and technical advisors having experience in trans-national pipeline work had started. Tendering and other formalities for appointing advisors were in progress and it is expected that advisors would be appointed by the end of September. GAIL also proposes to request the former Attorney General, Mr Soli Sorabji, to associate himself in the selection of a legal advisor.

The Ministry of Petroleum and Natural Gas has constituted a high-level committee comprising the Chairman and Managing Director, GAIL, Mr Proshanto Banerjee; the Indian Oil Corporation (IOC) Chairman, Mr S. Behuria, and a senior official from the Ministry to monitor the selection and appointment of financial, technical and legal advisors. The major scope of work for the technical advisor shall be to recommend the route, safety and security aspects, optimum cost of the project, transportation tariff and technical specifications of the pipelines.

The legal advisor will help in drafting and negotiating various inter-state and state level agreements. This would include memorandum of understanding between the heads of the states (Iran, Pakistan and India); the inter-governmental agreement to be entered into between the three nations to facilitate the realisation of the project within the territories of the aforesaid states, collectively emphasising the need for protection of investment and trade; and the host of government agreements to be entered into separately by India, Iran and Pakistan with the investors concerning the project to deal with the requirements of each host state individually and the project activity within each state.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page