India to get Iranian gas by 2011

30 June 2007

New Delhi: India will receive gas from energy-rich Iran via the $7.4-billion Iran-Pakistan-India pipeline that will transit Pakistan in four years, an Iranian oil official said in New Delhi.

The Business Standard quoted Ghanimi Fard, the Iranian oil ministry''s special representative, as saying, "The gas supply will start in 2011." He added that almost 18 per cent of the physical work on the pipeline in Iran had been completed since last year.

Fard made the comments to reporters after talks that wrapped up on Friday with Indian oil minister Murli Deora and Pakistan petroleum secretary Ahmad Waqar to finalise details for the pipeline.

Discussions on the proposal started in 1994, but have been stalled because of technical and commercial issues as well as strong objections from the United States, over Iran''s nuclear power programme.

M S Srinivasan, petroleum secretary, expressed confidence of resolving all issues by next month.

India and Pakistan agreed in February to pay Iran $ 4.93 per million British thermal units for its gas. But issues such as the frequency of the gas pricing, which Iran now wants every three years instead of the previously agreed seven have yet to be finalised.