Iran, Pakistan hold talks on gas pipeline project

Iran has dismissed speculations that India had pulled out of the $7.4-billion Iran-Pakistan-India (IPI) gas pipeline project, saying New Delhi was waiting for restoration of political stability in Pakistan.

Iran''s foreign ministry spokesman Mohammad-Ali Hosseini said at a weekly press briefing in Tehran that India had officially announced that it was waiting for the outcome of Pakistan''s elections.

"India has declared that the expert delegations of the two countries will discuss the gas transit fee," Hosseini added.

New Delhi wants the transit fee payable to Pakistan for using its territory for transporting the gas, to be resolved first. Islamabad is seeking $0.493 per MMBTU as transit fee while India has offered $0.20 per MMBTU.

Iranian and Pakistani officials yesterday started talks on the pipeline project covering 2,700 km - from Iran''s South Pars fields to India - and expected to be completed in three years.

About 750km of the pipeline will pass through Pakistani territory and the India hopes to settle some technical issues ahead of the ministerial-level talks on the project.