INDIA: No US pressure on Iran pipeline, Deora to Aziz

by Sanjay Dutta
US antipathy towards the $7 billion pipeline for wheeling gas from Iran to India through Pakistan cast its shadow over Tuesday's talks between Pakistan prime minister Shaukat Aziz and oil minister Murli Deora, even as Islamabad put up a brave front by proposing a formula aimed at allaying India's fears over security of the pipeline and break the logjam over transit charges.

Highly-placed sources said at his meeting with Deora, Aziz brought up the issue of US energy secretary Samuel Bodman's visit to Delhi just before the 14th Saarc summit.

Aziz quizzed Deora as to whether the Indian oil minister was worried over any US pressure against proceeding with the pipeline. On his part, Deora replied that Pakistan, and not India, should be worried over any US pressure.

"Mr Prime Minister, the US energy secretary did raise pipeline issue. We told them they are a friend but it is none of their concern...they cannot interfere with India. What about Pakistan? I guess you have more to worry about the US. If pipeline fails it will be because of you and me failing to agree and not because of any US pressure,"sources quoted Deora as telling Aziz.

Deora also indulged in some plain talking, first reported by TOI on Wednesday, by asking Pakistan to waive transit fees as it was also a beneficiary of the pipeline. To this, the Pakistan PM proposed a new formula.

"Why doesn't Pakistan sell the gas to India at its borders instead of New Delhi buying it from Iran and transporting across Pakistani territory,"Aziz suggested.

This way, India will be free of concerns over the safety of the pipeline passing through Pakistan territory and it will be Islamabad's responsibility to ensure gas supplies.
Indian concerns over the security issue were stressed by petroleum secretary M S Srinivasan who told Aziz that it was of importance as at stake will be downstream investments of $5-7 billion that will be made on the Indian side. Aziz said Pakistan could buy 60 million cubic metres per day of gas from Iran, use half of it and sell the rest to India.