Kasuri for early IPI gas pipeline pact

Pakistan Foreign Minister Khurshid Kasuri has called for the early formalisation of the 7.4 billion dollar Iran-Pakistan-India (IPI) gas pipeline project.

Islamabad, July 18 : Pakistan Foreign Minister Khurshid Kasuri has called for the early formalisation of the 7.4 billion dollar Iran-Pakistan-India (IPI) gas pipeline project.

In his meeting with visiting Iranian Deputy Foreign Minister, Mehdi Safari, Kasuri said the gas pipeline project would have a strategic bearing on progress in other areas of cooperation too.

According to the Dawn, Iran, Pakistan and India have agreed on a gas "price formula" which was earlier impeding progress in the 2600 km long pipeline project.

Pakistan President Pervez Musharraf had earlier said the project would benefit all three parties.

The project was conceptualized in 1989 by noted environment expert R. K. Pachauri in partnership with Ali Shams Ardekani, former Deputy Foreign Minister of Iran. Dr Pachauri proposed the plan to both the Iranian and Indian Governments in 1990. The Government of Iran responded positively to the proposal. At the annual conference of the International Association of Energy Economics, 1990, Dr Ardekani backed Dr Pachauri's proposal.

The pipeline is proposed to start from Asalouyeh stretching to over1100 kilometres in Iran itself. In Pakistan, it will pass through Baluchistan and Sind.

The deal faced a setback on July 16, 2006 when Iran demanded a price of 7.2 dollars per mBtu of gas against India's offer of 4.2 dollars per mBtu. The Indian spokesperson then had reasoned that Tehran's price was more than 50 per cent of the prevailing market determined gas price in India.

The pipeline would initially carry around 60 million cubic meters of gas from Iran everyday that would be split between India and Pakistan equally.

ANI