India: Iran-Pakistan-India Proposed Gas Pipeline Feasible

NEW DELHI -(Dow Jones)- India said Thursday the proposed Iran-Pakistan-India natural gas pipeline project is feasible.

"(The) Indian side had appointed Ernst & Young as the financial consultant and ILF, U.K. as the technical consultant for preparation of the pre-feasibility report of Iran-Pakistan-India pipeline project," junior Petroleum Minister, Dinsha Patel, told the lower house of parliament.

Patel added that the price of gas against the alternate fuel prices will determine the economic viability of the pipeline project, according to an Indian government statement.

"Iran has given a formula for determining (the) gas price at the Iran-Pakistan border. Two other issues, namely transportation tariff and transit fee, are under discussion between India and Pakistan," the statement quoted Patel as saying.

"Once these issues are decided, the price of gas at (the) Pakistan-India border would be known and then, a decision on the purchase of gas through Iran- Pakistan-India pipeline project will be taken," said Patel.

Iran, Pakistan and India plan a 2,600-kilometer gas pipeline at an estimated cost of $7 billion, which if built, is expected to handle 150 million cubic meters of gas a day. The project was first proposed by Tehran about a decade ago.

The pipeline in Iran up to the Iran-Pakistan border will be laid and operated by an agency to be nominated by Iran, the statement said.

Iran has offered to sell gas at the Iran-Pakistan border and Iran will take responsibility for the safety and security of the pipeline within Iran.

The safety and security for the pipeline and gas within Pakistan would be provided by the Pakistani government, for which a transit fee would be levied.

"Discussions on all these issues are continuing," said Patel.

The pipeline faces opposition from countries including the U.S., which opposes any business deals with Iran due to tensions over its disputed nuclear program.

Iran wants to develop outlets for its large proven natural gas reserves, estimated at 812 trillion cubic feet.

If the project goes ahead, India could initially buy up to 60 million cubic meters of gas a day from Iran, while Pakistan could buy as much as 30 million cubic meters a day.

Indian officials say if an agreement is reached, the pipeline could become a reality by 2012.

According to the latest government estimates, by 2025, India's gas demand will more than double to 400 million cubic meters a day from around 150 million cubic meters now.

-By Himendra Kumar, Dow Jones Newswires; 91-11-2307-4020; himendra.kumar@ dowjones.com

(END) Dow Jones Newswires
04-26-071036ET
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All three countries will benefit a lot from it.i pray it gets a go-ahead soon.

Few weeks ago I have read some where that Pakistan has provided a solution for the pipeline. Pakistan would buy from Iran and it would supply the gas through containers or pipeline i am not sure. Have u got any info on that news.

Prehaps u want to read the title of this thread again.

IRAN-PAKISTAn-india GAS PIPELINE

so paying us transit fee for that transfer.

I know exactly what thread it is. But India has expressed some serious doubt about the safety of the pipeline and was getting little bit nervous in going ahead in this huge project. That's when pakistani minister has proposed the above mentioned proposal. I have read this repost around 2-3 weeks ago i cannot recollect. Actually pakistan would put some surcharge for transportation of the gas to India. Safety issue came into place because the pipeline passes through one of the most rigorous territory of pakistan.

This is typical of Indian foot dragging with all things Pakistan. I believe that India is trying to scuttle this deal while they are going ahead with all sorts of other energy projects. They don't want Pakistan to resolve its energy issues. Pakistan's economy will stall if we don't resolve the crisis urgently. Pakistan should go ahead with its portion of the pipeline immediately because all the modalities from our side have already been worked out with Iran. Once our side starts the construction you'll see how fast the Indians will scurry to come aboard. We have got to stop linking the possibility of this pipeline to Indian participation.

Yes the proposal that you are referring to was still through the pipeline as mentioned in the article. The only difference is that the proposal said instead of India coming onboard in the tri-partite gas pipeline, Pakistan and Iran would build the pipeline and Pakistan would sell the gas at the border to India with transportation charges for the pipeline and security. This was said by Pakistan to save any so called inconenience to India in direct negotiations with Iran due to US pressure.

There are no trucks involved.

India is just using the gas pipeline issue to keep US on its toes regarding the nuclear energy deal.

what does nature of land scape has to do with safety of gas pipeline, normal wear and tear due to land scape is neva a problem. However if u r trying to suggest other things in this manner, well let me remind u that we pakistanis as whole would be a safety issue for u guys if u show some form of aggression toward us.



but how would it effect uncle sam. they could easily use paksitan to block that very access indina gets to pipeline. So i doubt india would be trying to use it as a tool. But they are rahter naive and thing they can loot the engery with both hands, Nuke from USA and gas from IRAN. But they dont know they will fall into the biggest trap they could think of. Since usa is draging its heel on NUKE issue, and just say it does go through but still india will be relying on usa to run and maintain those reactors, which usa can deny at anytime. WIth gas if they want to be smart A$$ with pakistan, than pakistan can turn the tap off for them as well. So IF we are to view it in differnt way we can see that India might think everyone loves em but at end of the day, their engery need would be controlled by another nation(s) which can be stopped at anytime.