Pakistan now offers to sell Iranian gas to India

07 Apr 2007

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New Delhi: Pakistan has now offered to sell Iranian gas to India at its border to save New Delhi the bother over risks associated with safe transit of the fuel through Pakistani territory.

Earlier on Tuesday this week, Pakistan's prime minister Shaukat Aziz offered to buy 60 million standard cubic meters per day of gas from Iran, use half of it in his country and sell the rest to India at the Indo-Pak border at a late night meeting with petroleum minister Murli Deora.

According to Aziz, this way save India having to deal with Iran, which faces UN sanctions over its nuclear programme, and not worry about security of the 1,035-km pipeline stretch in Pakistan and safe delivery of gas at its border.

Observers say the deal would help Pakistan generate additional revenue as it could add some margin to the already high Iranian gas price.

To India's objections to to the high charges that Islamabad expected for allowing transit of the Iranian gas, Aziz offered that his country would take care of negotiating a gas price with Tehran and bear the cost of transporting the gas from the Iran-Pakistan border to the Pakistan-India border.

Iran wants to sell natural gas to India and Pakistan at $4.93 per million British thermal unit (at $60 per barrel crude oil price). On top of this, Pakistan wants a transit fee of 10 per cent amounting to $0.49 per mBtu and levy transportation charges of $1.57 per mBtu, making the delivered price at the Indian border to $7 per mBtu.

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