02-05-2006, 05:10 AM
<b>The IPI gas pipeline is going nowhere</b>
<b><i>India seems to be the weakest link</i></b>
<b>KARACHI : The most significant change in the recent cabinet reshuffle by Indian Prime Minister Manmohan Singh was the removal of Mani Shankar Aiyar from the portfolio of petroleum and natural gas.
His shift comes at a time when the United States is putting the heat on both India and Pakistan to look at other alternatives for sourcing its gas needs. America is opposed to the $6 billion proposed Iran-Pakistan-India pipeline project on grounds that it wants to continue economic sanctions against Iran.</b>
The gas pipeline project is guaranteed to not only break Iranâs economic isolation somewhat but also make it a more important player in the region. This is something that the US has said that it does not want.
<b>The weakest link, if one may call it, was supposed to be Pakistan in terms of looking at other sources of gas in the region. America wields much more influence in Islamabad and it was expected that any change of mind would have come from Pakistan on this proposed project.
Instead, after the December 31, 2005 deadline (after which Pakistan was to decide whether to opt for Iran or Turkmenistan), President Musharraf made a public commitment to the Iran project. Unfortunately, the most vocal supporter of the project as well as the one with the best credentials, <span style='font-size:14pt;line-height:100%'>Mani Shankar Aiyar, was removed from his position.</span></b>
This seems to be a strange move considering that Mr Aiyar had actually done a lot in terms of sourcing oil and gas for India. Like all things in the sub-continent, he was sacked for doing a good job.
In an interview in 2005, Aiyar had said that both Pakistan and India are major consumers of natural gas and are willing to pay market rates for adequate and uninterrupted supply. "We are the choosers. The sellers will have to come to us," he commented.
Under Aiyarâs term, Pakistan and India along with Iran had made considerable progress in the IPI project over the past three years or so. The overland route had been decided and talks were to start on how to finance and build the pipeline.
The Indian opposition leader, Jaswant Singh, in Karachi over the week feigned ignorance over the reasons behind Aiyarâs removed. He said in an interview that he would have to examine fully the reasons behind Aiyarâs transfer to the sports ministry before making a statement.
In the same breath, Singh was also critical of the continued American interference in South Asian affairs.
Despite being in rival political camps, Singh and Aiyar worked together in 1996 on the IPI gas pipeline project as part of the study group.
In 1996, a joint India-Pakistan study group presented a report to the Indian Foreign Secretary recommended the overland route after setting out the steps that could be taken to ensure security of supplies even in the event of hostilities.
Jaswant Singhâs participation in the study group as that of Aiyar was as an individual. The initiative to convene the study group was taken by Shirin Tahir-Kheli, an American of Pakistani origin whose father was one of P V Narasimha Raoâs gurus in the old Nizamâs Hyderabad.
Tahir-Kheli was on the staff of the US National Security Council and is the only American of South Asian origin to have served as a US ambassador to the UN. The Pakistani side included one of Benazir Bhuttoâs ministers of state and Shahid Khaqan Abbasi, Pakistan MNA and PIA chairman.
Despite the recommendations of the group, the project remained under wraps till a couple of years back. Economists argue that the proposed gas pipeline will bring India, Pakistan and Iran a significant step closer in terms of their economic cooperation.
For its part, the US has given the Dauletabad gas fields in Turkmenistan as an alternative. Known as the Trans Asia Pipeline (TAP), this project was earlier mooted by an American led consortium. However, regional politics came in the way and shelved the project.
Regardless of which project Pakistan goes for, the bottom line is that a decision has to be taken quickly so that our gas requirements for the future are met. If this is not done in the next decade or so, industry as well as the common man will suffer greatly as a consequence.
Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->
<b><i>India seems to be the weakest link</i></b>
<b>KARACHI : The most significant change in the recent cabinet reshuffle by Indian Prime Minister Manmohan Singh was the removal of Mani Shankar Aiyar from the portfolio of petroleum and natural gas.
His shift comes at a time when the United States is putting the heat on both India and Pakistan to look at other alternatives for sourcing its gas needs. America is opposed to the $6 billion proposed Iran-Pakistan-India pipeline project on grounds that it wants to continue economic sanctions against Iran.</b>
The gas pipeline project is guaranteed to not only break Iranâs economic isolation somewhat but also make it a more important player in the region. This is something that the US has said that it does not want.
<b>The weakest link, if one may call it, was supposed to be Pakistan in terms of looking at other sources of gas in the region. America wields much more influence in Islamabad and it was expected that any change of mind would have come from Pakistan on this proposed project.
Instead, after the December 31, 2005 deadline (after which Pakistan was to decide whether to opt for Iran or Turkmenistan), President Musharraf made a public commitment to the Iran project. Unfortunately, the most vocal supporter of the project as well as the one with the best credentials, <span style='font-size:14pt;line-height:100%'>Mani Shankar Aiyar, was removed from his position.</span></b>
This seems to be a strange move considering that Mr Aiyar had actually done a lot in terms of sourcing oil and gas for India. Like all things in the sub-continent, he was sacked for doing a good job.
In an interview in 2005, Aiyar had said that both Pakistan and India are major consumers of natural gas and are willing to pay market rates for adequate and uninterrupted supply. "We are the choosers. The sellers will have to come to us," he commented.
Under Aiyarâs term, Pakistan and India along with Iran had made considerable progress in the IPI project over the past three years or so. The overland route had been decided and talks were to start on how to finance and build the pipeline.
The Indian opposition leader, Jaswant Singh, in Karachi over the week feigned ignorance over the reasons behind Aiyarâs removed. He said in an interview that he would have to examine fully the reasons behind Aiyarâs transfer to the sports ministry before making a statement.
In the same breath, Singh was also critical of the continued American interference in South Asian affairs.
Despite being in rival political camps, Singh and Aiyar worked together in 1996 on the IPI gas pipeline project as part of the study group.
In 1996, a joint India-Pakistan study group presented a report to the Indian Foreign Secretary recommended the overland route after setting out the steps that could be taken to ensure security of supplies even in the event of hostilities.
Jaswant Singhâs participation in the study group as that of Aiyar was as an individual. The initiative to convene the study group was taken by Shirin Tahir-Kheli, an American of Pakistani origin whose father was one of P V Narasimha Raoâs gurus in the old Nizamâs Hyderabad.
Tahir-Kheli was on the staff of the US National Security Council and is the only American of South Asian origin to have served as a US ambassador to the UN. The Pakistani side included one of Benazir Bhuttoâs ministers of state and Shahid Khaqan Abbasi, Pakistan MNA and PIA chairman.
Despite the recommendations of the group, the project remained under wraps till a couple of years back. Economists argue that the proposed gas pipeline will bring India, Pakistan and Iran a significant step closer in terms of their economic cooperation.
For its part, the US has given the Dauletabad gas fields in Turkmenistan as an alternative. Known as the Trans Asia Pipeline (TAP), this project was earlier mooted by an American led consortium. However, regional politics came in the way and shelved the project.
Regardless of which project Pakistan goes for, the bottom line is that a decision has to be taken quickly so that our gas requirements for the future are met. If this is not done in the next decade or so, industry as well as the common man will suffer greatly as a consequence.
Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->