Tri-lateral meet on IPI gas by July 2008

New Delhi, Tue, 24 Jun 2008 NI Wire

A trilateral ministerial meeting between Iran, Pakistan and India is likely to be held in July this year for sorting out all the problems regarding Iran-Pakistan-India (IPI) gas pipeline project, as per official source informed on Monday.

After concluding the oil meeting on Sunday, Indian Union Oil and Natural Gas Minister Murli Deora met his Iranian counterparts Gholam Hossein Nozari for resolving the obstacle in the way of IPI gas Pipeline project.

Indian oil minister informed Iranian minister about its interest in the multi-billion dollars gas pipeline project, besides notifying him in brief about the progress held in a bilateral meeting between India and Pakistan that was held earlier in April, 2008, in Islamabad.

India and Pakistan had solved the primary price differences and transit issues in a bilateral talk and a trilateral meeting is on the pipeline to sort out all differences before finalising the USD7.4 billion project.

“Most of the bilateral issues have been resolved and now a trilateral meeting of oil ministers of the three countries is most likely to take place in Tehran next month,” Petroleum Secretary MS Srinivasan informed on Monday.

Besides IPI project, India has also talked on several issues related to development of the hydrocarbons. The last trilateral meeting was held in June 2006, at New Delhi.

India, however, has accused Pakistan for making delay in this talk illustrating the reason: the frequently ministerial level changes in Pakistan. “Now, Pakistan Oil Minister has changed again”, said Srinivasan by adding, “We want to be sure that the new minister is in connect with what had been agreed on April 24 bilateral meet.”

India has problem with Iran on two major issues: price revision clause and gas sale agreement, which are expecting to be sorted out in this trilateral meeting.

‘Iran wants to deliver the gas for both the countries at the Iranian-Pakistan border while India wants the gas delivering point at Indo-Pakistan border. Pakistan has agreed on this point and assured India for its support,’ the Petroleum Secretary said.

While, on the price differences Iran is seeking to add a price revision clause in the Gas Sales Agreement, which India is opposing. “One can keep on discussing the clause for the next three year or five years and we do not need to be rigid on this point,” added Srinivasan.

The proposed IPI gas pipeline is an ambitious plan which will reduce the problem of natural gas deficiency and fuels both in India and Pakistan. Moreover, considering the increasing energy demands, it would be a huge boost to India, which produces only half of its natural gas needs. The work is expected to begin next year while the projected target of its completion is scheduled by 2012.

In the first phase, Iran would release the gas 60 million cubic metres daily, which would be distributed equally between India and Pakistan but later Iran would enhance the releasing limit up to 150 million cubic metres, as per the signed agreement.

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