The Hindu Business Line : Iran, Pak, India may lay gas pipelines in own territories

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Iran, Pak, India may lay gas pipelines in own territories

Richa Mishra

Individual countries to decide construction mode

New Delhi June 5 Even as a final call on the price of gas at the Indian border is to be taken, Iran, Pakistan and India seem to have firmed up their views on the proposed project structure of the tri-nation pipeline, which will transport gas from Iran to India via Pakistan.

Sources said that a consensus seems to be emerging that the three countries would individually lay the pipeline in their own territories, instead of adopting a consortium approach.

This, in effect, would mean that the portion of pipeline falling in Iran would be built by Iran, while Pakistan will build the section falling in its territory. India would build the portion from its border onwards, they explained. Further, it would be up to the individual countries to decide how they want to construct the pipeline by either giving it to one company or through a consortium approach.

According to experts, this would also help ward off the reported US pressure on India and Pakistan, because although the two would be purchasing gas from Iran, they would not invest in Iran technically.

India is likely to receive the Iranian gas at Barmer, Rajasthan.

Gas price

Sources said that at the recently concluded tri-nation meeting in Tehran, the three countries discussed the gas sales and purchase agreement clauses.

The issue of transit fee between India and Pakistan and the price of gas at the Indian border would be discussed at the subsequent meetings, as it was more of a bilateral matter, they added.

A bilateral meeting between India and Pakistan is expected to take place soon.

As per reports at the recent trilateral meeting Iran, India and Pakistan have narrowed down their differences over the proposed $7-billion natural gas pipeline.

The project has been found technically feasible but its economic viability will depend on the price at which Tehran sells the fuel, India had earlier said.

The Indian side had appointed Ernst and Young as the financial consultant and ILF, UK as the technical consultant for preparation of the pre-feasibility report.

Iran has given a formula for determining gas price at the Iran-Pakistan border.

India is discussing transportation tariff and transit fee to be paid to Pakistan for passage of the pipeline from its territory.

Tehran wants to sell natural gas to India and Pakistan at $4.93 per million British thermal unit ($60 per barrel crude oil price).

Transportation tariff and transit fee are added to this price.