The Hindu Business Line : Iran-Pakistan-India pipeline talks to go trilateral

Mr S.C. Tripathi (right), Secretary, Petroleum and Natural Gas, with his Pakistani counterpart, Mr Ahmad Waqar, at the India-Pakistan joint working group meeting on Iran-Pakistan-India gas pipeline in the Capital on Friday. — Kamal Narang

New Delhi , Dec. 16

PAKISTAN on Friday expressed hope that the project structure of the Iran-Pakistan-India gas pipeline would take a concrete shape by the middle of next year.

At the close of the first day of the third India-Pakistan Joint Working Group (JWG) meeting, the Pakistan's Petroleum and Natural Resource Secretary, Mr Ahmad Waqar, was optimistic that the talks would move into trilateral mode by the first quarter of 2006.

"The project structure should take concrete shape by the middle of next year. We plan to hold the trilateral talks with India and Iran JWG hopefully by the first quarter of next year in Tehran," he told media persons, after the meeting with the Indian delegation led by the Petroleum Secretary, Mr S.C. Tripathi.

Mr Waqar, who is leading a seven-member team including the representatives of Sui Gas, the largest public-private integrated gas company of Pakistan, said a wide range of issues were discussed, including the project structure, quality and quantity of gas to be imported from Iran, the build-up period of the project, gas pricing, insurance of gas and pipeline as also transit fee.

As regards the transit fee India would have to pay Pakistan for delivery of Iranian gas at the Indian border, he said international best practices would be adopted in framing the principles of transit fee.

"We have reached a broad agreement and need to work more on the project structure to refine it," he said, adding "by mid 2007 we should have everything in place. As the construction of the pipeline would take three years, we expect that the gas would flow by mid or end of 2010."

The Pakistani official endorsed the Indian view that once the three sides reach a framework agreement, the project will become a commercial venture and the Governments may not have to be involved. He also disclosed that besides the Russians, several Chinese companies have approached Pakistan for participation in the pipeline construction work.

Regarding the gas, Mr Waqar said Iran has indicated that as per their norms, only dry or lean gas minus liquefied petroleum gas would be offered to India and Pakistan.

Pakistan has adopted a consortium approach for appointment of a consultant on technical, legal, financial aspects of the multi-million dollar project and would be finalising the appointment soon. Those short-listed include PricewaterhouseCoopers and Lazard Brothers.

The third round of India-Pakistan talks are to be followed by another round of bilateral talks between India and Iran later this month. The Indian team felt that it would take at least another four to six months before the three countries would be able to raise the dialogue to the trilateral level. India is also looking at participating in the project, as advised by the financial consultants Ernst & Young.