01-13-2006, 10:34 PM
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>India may opt out of gas pipeline project</b>
Agencies/ New Delhi
Apprehending adverse US reaction, India is unlikely to participate in building of the 7-billion dollar gas pipeline project from Iran via Pakistan and instead may prefer buying gas at its border. The Petroleum Ministry is veering around to this idea and may soon approach the Cabinet for a final decision, informed sources said.
In a note being prepared for the Cabinet, the Petroleum Ministry has suggested that New Delhi enter into an agreement only with Iran for purchase of gas at its border. Tehran would have to court Islamabad for safe passage of the pipeline, uninterrupted supplies and delivery of gas at Indian border.
The Ministry feels that setting up of an international consoritum - comprising of state firms of the three countries and global energy majors - for construction and operation of the of the world's most valuable project could be a non- starter due to political and legal opposition from US, including the threat of invoking sanctions under ILSA.
The project, the note says, may be executed separately by the three countries in their own territories to protect the project from US sanctions. The natural gas would be supplied to India by a transnational pipeline on the basis of an India-Iran bilateral agreement which provisions 'supply- or-pay' and alternative supplies in case of disruptions.
This agreement would be complemented by an Iran-Pakistan agreement which would regulate the transit of the gas through Pakistani territory and contain effective disincentives for Pakistan to attempt to interrupt/disrupt gas supply to India, sources said.
<!--QuoteEnd--><!--QuoteEEnd--> <!--emo&:clapping--><img src='style_emoticons/<#EMO_DIR#>/clap.gif' border='0' style='vertical-align:middle' alt='clap.gif' /><!--endemo--> <!--emo&:guitar--><img src='style_emoticons/<#EMO_DIR#>/guitar.gif' border='0' style='vertical-align:middle' alt='guitar.gif' /><!--endemo-->
Agencies/ New Delhi
Apprehending adverse US reaction, India is unlikely to participate in building of the 7-billion dollar gas pipeline project from Iran via Pakistan and instead may prefer buying gas at its border. The Petroleum Ministry is veering around to this idea and may soon approach the Cabinet for a final decision, informed sources said.
In a note being prepared for the Cabinet, the Petroleum Ministry has suggested that New Delhi enter into an agreement only with Iran for purchase of gas at its border. Tehran would have to court Islamabad for safe passage of the pipeline, uninterrupted supplies and delivery of gas at Indian border.
The Ministry feels that setting up of an international consoritum - comprising of state firms of the three countries and global energy majors - for construction and operation of the of the world's most valuable project could be a non- starter due to political and legal opposition from US, including the threat of invoking sanctions under ILSA.
The project, the note says, may be executed separately by the three countries in their own territories to protect the project from US sanctions. The natural gas would be supplied to India by a transnational pipeline on the basis of an India-Iran bilateral agreement which provisions 'supply- or-pay' and alternative supplies in case of disruptions.
This agreement would be complemented by an Iran-Pakistan agreement which would regulate the transit of the gas through Pakistani territory and contain effective disincentives for Pakistan to attempt to interrupt/disrupt gas supply to India, sources said.
<!--QuoteEnd--><!--QuoteEEnd--> <!--emo&:clapping--><img src='style_emoticons/<#EMO_DIR#>/clap.gif' border='0' style='vertical-align:middle' alt='clap.gif' /><!--endemo--> <!--emo&:guitar--><img src='style_emoticons/<#EMO_DIR#>/guitar.gif' border='0' style='vertical-align:middle' alt='guitar.gif' /><!--endemo-->