Pakistan hopes to soon conclude an agreement with India on the transit fee for transmission of natural gas from Iran to India through a gas pipeline running through its territory.

Pakistan expects India to agree on 40 cents per million British thermal unit (MMBTU) transit fee for the Iran-Pakistan-India (IPI) gas pipeline, generating around $148 million per annum from India, Pakistan media reports quoting senior petroleum ministry officials said.

''Progress has been made on the gas transit fee issue between India and Pakistan and the two countries would soon sign the gas transit agreement,'' the report quoted petroleum minister Khawaja Asif as saying

He said the two countries have completed five to six communicative exchanges during recent days and all matters regarding the gas transit fee agreement would be settled within the next few days.
 
''In order to ensure the security of our energy supplies, we are pursuing policies of increasing domestic supplies, attracting foreign investment, diversifying imports to include natural gas, coal, electricity and supporting renewable energy resources and regional cooperation,'' the minister told the annual technical conference of the Society of Petroleum Engineers (SPE).

Energy demand in Pakistan has been increasing and, according to SPE chairman Farhan Siddique, this could be met by ensuring gas supplies from the central Asian states.

The Iran-Pakistan-India gas pipeline project plan got a shot in the arm when the  Iranian president made a brief stop-over in Delhi last week on his way to Sri Lanka.

The merits of the project are clear: Iran needs a market for its ample supplies of natural gas, India is the obvious regional destination, and a pipeline across Pakistan is the best way of getting it there. However, the project has been held up due to US pressure and India's disputes with Pakistan.