The Hindu Business Line : `Efforts on to finalise issues pertaining to Iran pipeline project'

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New Delhi March 6 The Petroleum Minister, Mr Murli Deora, today said that efforts were being made to finalise all issues concerning the proposed Iran-Pakistan-India (IPI) gas pipeline project. In a reply to a question in the upper house, the Minister said, "negotiations are continuing on project structure, pricing, transportation tariff, security, pipeline route and contractual obligations of the project."

At the fourth bilateral working group meeting with Pakistan on February 22-23 to discuss various issues relating to transit of IPI pipeline through Pakistan, Iran attended the meeting as an observer. Issues pertaining to transportation tariff and transit fee for passage of gas through Pakistan were also discussed, he said.

On the issue of liquefied natural gas (LNG) deal with Iran, the Minister said, a sale purchase agreement (SPA) for purchase of five million tonne per annum of LNG was signed between GAIL (India) Ltd, Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd, and National Iranian Gas Export Company Ltd on June 13, 2005 in Tehran. The contract is for a period of 25 years beginning the last quarter of 2009. The SPA has a provision for supply of additional 2.5 MMTPA of LNG from 2011.

"The price of LNG has been negotiated on commercial considerations. It is linked to Brent crude prices with an appropriate floor and ceiling," he said.

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`Efforts on to finalise issues pertaining to Iran pipeline project'