The Hindu Business Line : Iran pipeline project: Pakistan Minister coming today

TAKING forward the deliberations on the implementation of the multi-million dollar Iran-Pakistan-India gas pipeline project, India and Pakistan will discuss the major aspects, including the project structure, gas price, the tripartite framework agreement and a road map for the future when Pakistan's Minister of Petroleum and Natural Resources, Mr Amanullah Khan Jadoon, visits India on February 16.

Briefing newspersons, the Petroleum Secretary, Mr M.S. Srinivasan, said the main issues concerning the project are pricing of gas and the project structure. The framework agreement between the three countries is currently planned to be signed in March, the Secretary said. "A marginal delay by a month or so will not have a major impact on the project that is expected to come up in five years after a trilateral agreement is signed."

India will be seeking a commitment on the assured supply of gas throughout the life of the project. The Petroleum Minister, Mr Murli Deora, will hold discussions with his Pakistani counterpart on these issues on February 17.

"The issue is whether the pipeline be built as a consortium by the three countries, or by each one doing their bit in their own country. Pakistan and India have shared the idea of a consortium doing the pipeline," he said.

Asked whether there would be other bilateral issues taken up during the meeting, he said the possibility of diesel exports to Pakistan would also be discussed. "Initially, the exports may be in the vicinity of 1 lakh tonnes to 1.2 lakh tonnes annually," he stated.

Responding to a query on whether Iran is considering to review the $22-billion deal to import of 5 million tonnes (mt) of liquefied natural gas (LNG) contracted by India last year, the Petroleum Secretary said, "Iran has not officially indicated that it wants to review the contract signed in June last year. It is a legally binding contract on both the sides."

"Current discussions with Iran are focussed only on additional 2.5 mtpa of LNG. The 5-mt deal is in place," he said. Some doubts had arisen about the deal since Iran is yet to ratify it (the agreement was signed in June 2005).

IndianOil, GAIL eye stake in Pakistani gas companies

Indian Oil Corporation and GAIL (India) Ltd may bid for stakes in Pakistan's gas companies Sui Southern Gas Company Ltd (SSGCL) and Sui Northern Gas Pipelines Ltd (SNGPL). The two companies have sought the Petroleum Ministry's approval for the bidding. The Petroleum Secretary said that the companies had submitted their proposal to the Ministry. "We have not taken a view on the issue," he added.

The Ministry has sought some information from the companies about their proposal. Asked about the Governmental approval, the Secretary said, "The Government approval is sought in instances where the investment limit for `navratna' companies is crossed or the regional security issues are involved."