India to skip Tehran meet on gas pipeline project
06 Feb 2008
Mumbai: India has decided to skip talks on the Iran-Pakistan-India gas pipeline project in the hope that elections in Pakistan will help resolve transit fee issue that poses hurdles to the implementation of the project.
India is unlikely to attend a meeting called by Iran next week to discuss the India-Pakistan-Iran (IPI) gas pipeline project, reports quoting sources close to the petroleum minister Murli Deora said.
Tehran wants to bring New Delhi and Islamabad to the table to resolve their differences over the transit fees that Pakistan intends to charge India for the transfer of Iran's natural gas.
February 12 or 13 has been suggested as the date for talks.
Deora, is expected to visit Pakistan next month to discuss the details of the transit fee. Deora's visit is taking place at the invitation extended by Pakistan's petroleum and natural resources minister, Amanullah Khan Jadoon, during their recent meeting in London.
India and Iran also have to resolve the price for the natural gas. The two nations had signed an agreement that linked liquefied natural gas to the price of Brent crude oil with a cap at $31 per barrel. Now Iran is suggesting a raise to $55 per barrel, upping the LNG price to $4.78 per MBTU.
Indian and Pakistani ministers discussed this at their recent meeting in London as well. Further discussions will be expected at the Tehran meeting.
