ID :
13788
Fri, 07/25/2008 - 15:01
Auther :
Shortlink :
http://m.oananews.org//node/13788
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India awaits Iran offer for talks on I.P.I.
New Delhi, July 25 (PTI) - The pact for U.S.D. 7.4 billion dollar Iran-Pakistan-India gas pipeline may not meet the August deadline as Tehran has failed to convene a trilateralmeeting to nail the agreement.
"We had last month asked Iran to convene a trilateral ministerial meeting to resolve the outstanding issues so as to pave way for signing of an agreement on the pipeline project but they have so far not communicated any dates," a seniorPetroleum Ministry official said.
Petroleum Minister Murli Deora had followed last month's letter to Iran with a meeting between his Iranian counterpartGholam-Hossein Nozari in Madrid to press for an early meeting.
The two had agreed to conclude the contract by August. ButTehran so far has not communicated any dates.
New Delhi wants to resolve the issue of price revision clause being sort by Iran before making up its mind on signing of the pipeline pact. Iran and Pakistan have initiated a Gas Sales Purchase Agreement, wherein they have agreed to a price review mechanism but New Delhi is opposed to attempts byTehran to reopen the price already sealed, the official said.
India and Pakistan have resolved all bilateral issuesincluding transit fee which saw New Delhi boycotting I.P.I.
pipeline talks for about a year.
India has more or less agreed to give Pakistan a transit fee of U.S.D. 200 million per year, which is equivalent to U.S.D. 0.60 per million British thermal unit for allowingpassage of the pipeline through that country.
Delivery point of gas or the place where custody of gas will be transferred to India will also be discussed at thetrilateral meeting, the official said.
India wants the delivery point of gas for India should be India-Pakistan border, against Iran's position that the delivery point should be at Iran-Pakistan border to cut transit risks in Pakistan. If Iran's stated position is accepted, the issue of ownership of gas while transitingthrough Pakistan has to be addressed and settled.
India had been boycotting Iran-Pakistan-India gas pipeline talks since August 2007 over transit fee demanded by Pakistan for passage of gas through that country. But the ice was broken when oil ministers of the two countries met inIslamabad in April.
The official said India also wants state-run G.A.I.L.
India to participate in the project.
New Delhi wants Iran to dedicate a particular gas field like South Pars for Iran-Pakistan-India pipeline and get its reserves certified by a third party. It also wants to knowalternate supply sources in event of depletion of reserves.
The I.P.I. project initially envisaged 90 mmscmd for India and 60 mmscmd for Pakistan. India later agreed to equally share with Pakistan at 30 mmscmd each because of the latters greater need due to its depleting gas reserves. As for the pipeline length, the shortest distance through Pakistan is 750 km but Islamabad wants the southern route which involves an extra 286 km with consequent increase in costs andtransport tariff.
India's current gas supplies of 91 mmscmd, including imported liquefied natural gas, fall short of potential demand of 170 million cubic meters. Demand may quadruple to 400 million cubic meters a day by 2025 if the economy grows at theprojected rate of 7 to 8 percent a year.
"We had last month asked Iran to convene a trilateral ministerial meeting to resolve the outstanding issues so as to pave way for signing of an agreement on the pipeline project but they have so far not communicated any dates," a seniorPetroleum Ministry official said.
Petroleum Minister Murli Deora had followed last month's letter to Iran with a meeting between his Iranian counterpartGholam-Hossein Nozari in Madrid to press for an early meeting.
The two had agreed to conclude the contract by August. ButTehran so far has not communicated any dates.
New Delhi wants to resolve the issue of price revision clause being sort by Iran before making up its mind on signing of the pipeline pact. Iran and Pakistan have initiated a Gas Sales Purchase Agreement, wherein they have agreed to a price review mechanism but New Delhi is opposed to attempts byTehran to reopen the price already sealed, the official said.
India and Pakistan have resolved all bilateral issuesincluding transit fee which saw New Delhi boycotting I.P.I.
pipeline talks for about a year.
India has more or less agreed to give Pakistan a transit fee of U.S.D. 200 million per year, which is equivalent to U.S.D. 0.60 per million British thermal unit for allowingpassage of the pipeline through that country.
Delivery point of gas or the place where custody of gas will be transferred to India will also be discussed at thetrilateral meeting, the official said.
India wants the delivery point of gas for India should be India-Pakistan border, against Iran's position that the delivery point should be at Iran-Pakistan border to cut transit risks in Pakistan. If Iran's stated position is accepted, the issue of ownership of gas while transitingthrough Pakistan has to be addressed and settled.
India had been boycotting Iran-Pakistan-India gas pipeline talks since August 2007 over transit fee demanded by Pakistan for passage of gas through that country. But the ice was broken when oil ministers of the two countries met inIslamabad in April.
The official said India also wants state-run G.A.I.L.
India to participate in the project.
New Delhi wants Iran to dedicate a particular gas field like South Pars for Iran-Pakistan-India pipeline and get its reserves certified by a third party. It also wants to knowalternate supply sources in event of depletion of reserves.
The I.P.I. project initially envisaged 90 mmscmd for India and 60 mmscmd for Pakistan. India later agreed to equally share with Pakistan at 30 mmscmd each because of the latters greater need due to its depleting gas reserves. As for the pipeline length, the shortest distance through Pakistan is 750 km but Islamabad wants the southern route which involves an extra 286 km with consequent increase in costs andtransport tariff.
India's current gas supplies of 91 mmscmd, including imported liquefied natural gas, fall short of potential demand of 170 million cubic meters. Demand may quadruple to 400 million cubic meters a day by 2025 if the economy grows at theprojected rate of 7 to 8 percent a year.
