ID :
30969
Wed, 11/19/2008 - 08:40
Auther :
Shortlink :
http://m.oananews.org//node/30969
The shortlink copeid
Iran seeks changes in 'under-negotiation' IPI pipeline pact
New Delhi, Nov 18 (PTI) In a new twist to negotiations on the much-delayed Iran-Pakistan-India pipeline, Tehran wants legal immunity in case of armed conflict disrupting natural gas supplies through the proposed line.
Iran wants changes to be made in the under-negotiation
Gas Sales and Purchase Agreement (GSPA) with consuming
nations, to insulate itself from payment of penalties in case
of non-supply of natural gas due to armed conflict, government
sources said.
The amendment to the force majeure clause is being
opposed by New Delhi which wants Tehran to make alternate
arrangements like shipping gas in its liquefied form (LNG), in
event of disruption.
Negotiations on the USD 7.4 billion pipeline have been
long and tedious with each side wanting to protect its
interest and now, when most of the issues have been settled,
the new condition would further delay an agreement on the
project.
Sources said Iran has sent an amendment to the force
majeure clause that sought to include its enforcement in
situation(s) of armed conflicts or war. It wants the term
Act of War under excusing event to be replaced by a suitable
substitute such as situation of armed conflicts or war in the
GSPA.
But, New Delhi is not willing to absolve Iran of its
liability to pay for non-supply of gas in situations other
than war. Iran, it says, has to commit to the principle of
'supply-or-pay' as the buyers are agreeing to 'take-or-pay'
clause.
India, sources said, also wants the ownership of the
natural gas to be transfered to it at Pakistan-India border
and Iran should be liable for safe passage of the fuel in
Pakistan. India has said it will pay only if gas is delivered
at its border.
Iran proposes to transfer ownership of the gas at its
border with Pakistan and wants New Delhi and Islamabad to
enter into suitable agreements for onward transit of the fuel.
New Delhi is also opposed to Iran's insistence on
revising the gas price every three years. It believes the
pricing formula agreement between the three nations was for
the entire 25-year tenure of the project.
India and Pakistan are to buy 30 million standard cubic
meters per day of gas each from the proposed pipeline. PTI ANZ
Iran wants changes to be made in the under-negotiation
Gas Sales and Purchase Agreement (GSPA) with consuming
nations, to insulate itself from payment of penalties in case
of non-supply of natural gas due to armed conflict, government
sources said.
The amendment to the force majeure clause is being
opposed by New Delhi which wants Tehran to make alternate
arrangements like shipping gas in its liquefied form (LNG), in
event of disruption.
Negotiations on the USD 7.4 billion pipeline have been
long and tedious with each side wanting to protect its
interest and now, when most of the issues have been settled,
the new condition would further delay an agreement on the
project.
Sources said Iran has sent an amendment to the force
majeure clause that sought to include its enforcement in
situation(s) of armed conflicts or war. It wants the term
Act of War under excusing event to be replaced by a suitable
substitute such as situation of armed conflicts or war in the
GSPA.
But, New Delhi is not willing to absolve Iran of its
liability to pay for non-supply of gas in situations other
than war. Iran, it says, has to commit to the principle of
'supply-or-pay' as the buyers are agreeing to 'take-or-pay'
clause.
India, sources said, also wants the ownership of the
natural gas to be transfered to it at Pakistan-India border
and Iran should be liable for safe passage of the fuel in
Pakistan. India has said it will pay only if gas is delivered
at its border.
Iran proposes to transfer ownership of the gas at its
border with Pakistan and wants New Delhi and Islamabad to
enter into suitable agreements for onward transit of the fuel.
New Delhi is also opposed to Iran's insistence on
revising the gas price every three years. It believes the
pricing formula agreement between the three nations was for
the entire 25-year tenure of the project.
India and Pakistan are to buy 30 million standard cubic
meters per day of gas each from the proposed pipeline. PTI ANZ
