India, Iran to resume talks on gas pipeline through Pak

[vimki]

After a two-year lull, India has proposed to resume talks with Iran next week on importing gas through a pipeline passing through Pakistan, but Tehran is yet to respond to the offer.

India last month proposed a meeting of the India—Iran Joint Working Group (JWG) between May 23 and 28 in New Delhi to discuss the Iran-Pakistan-India gas pipeline project, but Tehran has not yet confirmed the data, sources said.

India has been boycotting project talks since 2008 over concerns on safe delivery of gas and frequent changes in price of gas. New Delhi wants Iran to stick to the price agreed between them in 2007 and also wants it to be responsible for safe passage of gas through Pakistan.

India’s External Affairs Minister, S. M. Krishna, who is here to attend the G-15 Summit, is likely to discuss resumption of dialogue on the IPI project when he meets his counterpart Manouchehr Mottaki.

Sources said the delay in Iran’s response essentially means that talks cannot happen between May 23 and 28 and new dates will now have to be discussed.

The pipeline has been on the drawing board since the mid-1990s, when Iran and India inked preliminary agreements to transport gas through Pakistan. It was dubbed the “Peace Pipeline”, because of hopes it would lead to a detente between neighbours India and Pakistan.

India says it fears for safety of the pipeline in Pakistan’s Baluchistan province, home to a militant Islamist separatist movement, and wants Iran to take responsibility for safe passage of gas through Pakistan. It wants pay for the fuel only when it is delivered to it at the Pakistan-India border.

Sources said Krishna will again flag India’s concern on safety and pricing during the meeting to Mottaki. Unless the twin issues are addressed, it may not join the project even though Iran and Pakistan in March signed an Inter-Governmental Framework Declaration to support the gas pipeline. A Gas Sale and Purchase Agreement between National Iranian Gas Export Co (NIGEC) and Pakistan Inter-State Gas Co has also been concluded.

New Delhi is also upset with Iran’s frequent changes in gas price. Iran had originally priced its gas at $ 3.2 per mmBtu but later in 2007 revised the rates to $ 4.93 per mmBtu at $ 60 a barrel crude oil prices, which was accepted by India. Last year, it unilaterally revised it and according to the new pricing formula, the fuel will cost New Delhi $ 8.3 at an $ 60 per barrel oil price at the Iran—Pakistan border.

Added to this would be a minimum of $ 1.1—1.2 per mmBtu towards the transportation cost and transit fee that India would have to pay for wheeling the gas through Pakistan, they said.

Sources said Tehran wants to transfer ownership of gas to India at Iran-Pakistan border while New Delhi wants it to be at the Pakistan-India border, thereby making Iran explicitly responsible for safe delivery of gas.

While the 1,100-km pipeline from the South Pars gas fields in the Persian Gulf to the Iran-Pakistan border would be laid by an Iranian firm, New Delhi wants to take stake in the 1,035-km pipeline section in Pakistan.

India feels that its participation in execution of the pipeline in Pakistan would make the project more bankable, reduce the financing cost, ensure timely execution and ensure transparent and efficient management of operations, they said, adding that Islamabad has so far not agreed to the proposal.

India wants in-built safeguards in the contract to ensure safe delivery of gas at the India-Pakistan border.

 

[Mogambo]

This is never gonna happen, a pipe dream.

 

[Windjammer]

India wants IPI talks, Iran turns deaf ear
NEW DELHI—Breaking a two-year chill in talks over its joining the Iran-Pakistan-India gas pipeline, India has invited Iran for resumption of dialogue on the long discussed project but Tehran is yet to respond.
India has proposed a meeting of India-Iran Joint Working Group between May 23-28 in New Delhi but Tehran has not yet confirmed the dates, sources in know of the development said. India has been boycotting project talks since 2008 after its concerns of safe delivery of gas were ignored. It wants Iran to be responsible for safe passage of gas through Pakistan and would pay for the fuel only when it is delivered at the Pakistan-India border. External Affairs Minister S M Krishna is scheduled to visit Iran for the G-15 summit on May 17, and is likely to discuss the project with his Iranian counterpart tomorrow.
Economic cooperation between members of G-15, a group of 17 developing countries from Asia, Africa and Latin America, and a review of international developments will feature in the high profile summit. Sources said India had last month proposed dates for JWG and it was unlikely that the meeting can now happen between May 23 and 28 because of paucity of time.
The pipeline has been on the drawing board since the mid-1990s, when Iran and India inked preliminary agreements to transport gas through Pakistan. It was dubbed the “Peace Pipeline” because of hopes it would lead to a detente between neighbours India and Pakistan. India says it fears for safety of the pipeline in Pakistan’s Baluchistan province, home to a militant Islamist separatist movement, and wants Iran to take responsibility of safe passage of gas through Pakistan.
While security concerns and frequent changes in gas prices kept New Delhi away from the project, Iran and Pakistan in March signed Inter-Governmental Framework Declaration to support the gas pipeline. Gas Sale and Purchase Agreement between National Iranian Gas Export Co (NIGEC) and Pakistan Inter-State Gas Co has also been concluded. Sources said Tehran is insisting on transferring ownership of gas to India at Iran-Pakistan border while New Delhi wants it to be Pakistan-India border thereby making Iran explicitly responsible for safe delivery of gas.—Agencies

 

[T-Faz]

Best if Iran does not respond because India due to US pressure dragged this project for far too long.

India was offered a good deal and many chances of negotiations to no avail.

 

[SpArK]

Its better to think the undersea pipeline which is more practical and possible.

 

[jha]

Its better to think the undersea pipeline which is more practical and possible.

That will be costly as hell...plus there was talk of electricity also...

 

[Chappal Chor]

no way we can have it with it passing from pakistan. there are enough nutcases to blow that off in case of hostilities or without hostilities. we have options and we can go for them. peace is good but when it is not at the expense of our needs

 

[AgNoStiC MuSliM]

I doubt India has any intention of seriously pursuing the pipeline so long as India-Pak relations remain at the levels they are currently.

This is merely an attempt to get back into Tehran's good books in order to build a 'coalition' of 'like minded countries' on Afghanistan in order to counter some perceived Taliban takeover after the US leaves.

The same old same old from India, and the lukewarm response from Iran may indicate that they are not impressed by what India is offering.

 

[gurjot]

this dream will always stay in pipe,which has no end

 

[DesiGuy]

i think India should go with this plan. in future, wars won't be fought when there is hunger for bases on space.

Once any nation has set up moon base, With 100% confidence, i can say that it will lift that nation economy up and will be the winner.


space exploration can be great for economic.

 

[PakSher]

India has delayed the project long enough and Pakistan and Iran should continue with the project implementation. India when serious can always be considered to join later on.

Pakistan needs to sort out all water disputes with India before they allow India trade routes to Central Asia and allow them to import gas from Iran. Once we can resolve these major issues then exporting gas to India will be beneficial for Pakistan.

 

[ajpirzada]

iran and pak must not stop the project and wait for india. india is far too complicated and political. they might only be showin interest to play chess with US. but if they r really interested then gud for pak. we ll be gettin transit fee

 

[EjazR]

I think there has been some recent talks with Pakistani FM and Indian counterpart on this. In a recent interview he indicated that India would very soon be joining the IPI. This could mean that Pakistan may have guaranteed the security of gas supplies in some way or another.
The recent talks with Indian FM Krishna in Iran indicates a buildup on this

 

[karan.1970]

^^ Pakistan's gaurantee to India (or vice Versa) has no value in today's environment. India will enter this deal only if Iran gaurantees the safety of gas at Indian border. I dont see that happening as it is too much of a financial risk for Iran. Hence I dont see India playing any part in this deal. Also, unless China jumps in, I dont see too much of an upside for Iran on this..

 

[Gene]

India will invest billions of dollar in this project.All the investment will be vain if a terrorist gonna blast this with a $100 bomb???
India should invest this huge amount in solar power project...