India, Pakistan and Iran are likely to sign an agreement for a tri-nation gas pipeline costing over 7-billion dollars by end of next month, Indian Petroleum Secretary M S Srinivasan said here today.
"India and Pakistan will have a meeting shortly to sort out issues on transportation tariff and transit fee, after which ministerial level signing of framework agreement for the pipeline will happen," he told reporters, PTI said.
The India-Pakistan official level talks by month-end or early July, will be followed by a ministerial dialogue to seal issues on transportation tariff and transit fee payable to Islamabad for allowing passage of the pipeline to India.
Following agreement on the two issues, Iran, Pakistan and India will sign Framework Agreement for the project, he said.
India and Pakistan have broadly agreed to the pricing formula suggested by Iran but New Delhi is unwilling to sign on dotted lines unless issues with Pakistan are settled.
Tehran wants to sell gas to India and Pakistan at 4.93 dollar per million British thermal unit (at USD 60 per barrel crude price).
Transportation tariff and transit fee are extra. Pakistan is seeking a transportation tariff of 0.70-0.75 dollar per mBtu while India was willing to pay no more than 0.55 dollars per mBtu (220 million dollars annually).
On transit fee, Islamabad is seeking 0.493 dollars per mBtu while New Delhi has offered 0.20 per mBtu.
"Iran has offered to sell gas at Iran-Pakistan border and all responsibilities for the safety and security of the pipeline within Iran will vest with Iran," Srinivasan said.
The 2,300-km pipeline will initially carry around 60 million cubic meters of gas a day, split between India and Pakistan equally.
"India and Pakistan will have a meeting shortly to sort out issues on transportation tariff and transit fee, after which ministerial level signing of framework agreement for the pipeline will happen," he told reporters, PTI said.
The India-Pakistan official level talks by month-end or early July, will be followed by a ministerial dialogue to seal issues on transportation tariff and transit fee payable to Islamabad for allowing passage of the pipeline to India.
Following agreement on the two issues, Iran, Pakistan and India will sign Framework Agreement for the project, he said.
India and Pakistan have broadly agreed to the pricing formula suggested by Iran but New Delhi is unwilling to sign on dotted lines unless issues with Pakistan are settled.
Tehran wants to sell gas to India and Pakistan at 4.93 dollar per million British thermal unit (at USD 60 per barrel crude price).
Transportation tariff and transit fee are extra. Pakistan is seeking a transportation tariff of 0.70-0.75 dollar per mBtu while India was willing to pay no more than 0.55 dollars per mBtu (220 million dollars annually).
On transit fee, Islamabad is seeking 0.493 dollars per mBtu while New Delhi has offered 0.20 per mBtu.
"Iran has offered to sell gas at Iran-Pakistan border and all responsibilities for the safety and security of the pipeline within Iran will vest with Iran," Srinivasan said.
The 2,300-km pipeline will initially carry around 60 million cubic meters of gas a day, split between India and Pakistan equally.
IPIC
India
Pakistan
Iran
pipeline
energy security
geopolitic
