45-day deadline on gas pipeline ends
Sujay Mehdudia
India, Iran, Pakistan yet to discuss key issues
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LNG, IPI pipeline deal inter-linked
Pranab scheduled to visit Tehran on
July 29-30
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NEW DELHI: With India, Pakistan and Iran failing to resolve their
differences, the 45-day deadline to sort out the safety and security issues
concerning the $ 7.4-billion gas pipeline project has expired.
During his one-day visit to India on April 29, Iranian President Mahmoud
Ahmadinejad set the deadline to sort out all issues pertaining to the 2,700-km
pipeline. However, there have been no talks with Iran on the safety and
security of the pipeline raised by India during Mr. Ahmadinejads visit. Nor
has the transit fee issue with Pakistan been resolved.
The early clearance for the $ 22-billion Liquefied Natural Gas supply deal
has been inter-linked with the gas pipeline and is hanging fire for almost
three years now.
Risk of transit
Informed sources said India handed over some points to Mr. Ahmadinejad. It
wanted Tehran to hand over the custody of gas at the India-Pakistan border and
not at the Iran-Pakistan border, as suggested by Iran, to cut down the risk of
transit through Pakistan.
India also opposed a price revision clause that Iran is seeking to insert in
the Gas Sales Agreement. New Delhi wanted Tehran to dedicate a particular gas
field like South Pars for the gas pipeline and sought third party certification
of its reserves. It sought to know the alternative supply sources in the event
of depletion of reserves.
India has been boycotting the pipeline talks since August 2007 over
Pakistans transit fee demand. Talks between New Delhi and Islamabad are
stalled, with India offering to pay 15 cents per million British Thermal Units
(mmBtu) against Pakistans demand of 42 cents per mmBtu.
Although it was decided that the oil Ministers of the three nations would
meet soon to resolve the issues concerning the pipeline, no progress has been
reported till date.
External Affairs Minister Pranab Mukherjee is scheduled to visit Tehran on
July 29-30 to attend the India-Iran Joint Commission meeting and is likely to
take up the pipeline issue.
It is time to give final shape to the project, which is very important from
Indias energy security point of view and the continued deficiency in natural
gas supplies, commented a senior Indian official.
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With Regards
Abi
