Energy Sector - 2

[Naresh]

<b>India Unclear On Joining IPI Gas Pipeline Project</b>

India is still in doubt on joining the Iran-Pakistan-India (IPI or Peace) gas pipeline project in spite of Tehran and Islamabad signing a bilateral agreement. With India refusing trilateral negotiations for almost two years now, Tehran and Islamabad have signed a bilateral deal on the pipeline. The agreement was signed by Iran’s President, Mahmoud Ahmadinejad and Pakistani counterpart, Asif Ali Zardari in Tehran, on the sidelines of a trilateral summit on Afghanistan security.

A senior petroleum ministry official said, "We have not pulled out of the project. We have certain concerns which need to be addressed before we can join the project."

As per the agreement, Iran will initially transport 30 million cubic meters of gas per day to Pakistan but will ultimately raise the gas transfer to 60 million cubic meters per day. A 2,100-kilometers pipeline from South Pars fields in Persian Gulf would be constructed in five years.

However Iran, left scope for India joining the project at a later date.

"We are committed to continue to dialogue (with Iran and Pakistan) on the pipeline project," said Petroleum Secretary, R S Pandey.

<b>Another official informed New Delhi had not yet shut pricing and transit issues with Iran and Pakistan and would not sign a pipeline contract until its concerns safe passage of gas through Pakistan is addressed.</b>

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