India negotiating with Iran, US to join gas pipeline project
India is negotiating with Iran and the United States to join the
peace pipeline project, Indian Minister of Petroleum and Natural
Gas Veerappa Moily said.
Moily confessed that the pipeline project was beneficial for India,
the Indian media reported.
According to the minister, India is discussing the US-generated
sanctions on Iran.
The Iran-Pakistan gas pipeline, projected to cost $1.2-1.5 billion,
would enable the export of 21.5 million cubic meters of Iranian
natural gas to Pakistan on a daily basis.
The pipeline stretches from the border between the two countries to
Navabshah region in Pakistan, and covers 781 kilometers of its
total length of 1,881 kilometers.
Iran-Pakistan gas pipeline's construction plan was officially started on March 11.
Iran plans to extend its 7th cross-country pipeline from
Southwestern port city of Assaluyeh to the southeastern city of
Iranshahr, and from there to the Pakistan border. By extending the
pipeline Iran can also supply gas to its eastern provinces.
An Iranian contractor will lay some 780 kilometers of pipeline in
the Pakistan soil in 22 months, he said.
Iran and Pakistan have devised a plan to finance the gas pipeline
on Pakistan's side without the need for Islamabad to transfer funds
to Tehran.
Based on the agreement, Tehran will grant a $500-million loan to
Tehran-based Tadbir Energy Development Group, which is responsible
for laying a pipeline in Pakistan under the multi-billion-dollar
project.
In the first phase, Iran will lend 250 million dollars and extend
the assistance later to 500 million dollars.
Pakistan will pay back Iran's $500-million loan after peace
pipeline's inauguration.
The pipeline is projected to come on stream in 2014.
Iran has already constructed more than 900 kilometers of the
pipeline on its soil.
Discussions between the governments of Iran and Pakistan started in
1994. A preliminary agreement was signed in 1995. This agreement
foresaw construction of a pipeline from South Pars gas field to
Karachi in Pakistan. Later Iran made a proposal to extend the
pipeline from Pakistan into India. In February 1999, a preliminary
agreement between Iran and India was signed.
In April 2008, Iran expressed interest in China's participation in
the project. In August 2010, Iran invited Bangladesh to join the
project.
In 2009, India withdrew from the project over pricing and security
issues.
However, in March 2010 India called on Pakistan and Iran for
trilateral talks to be held in May 2010 in Tehran.