India to join Iran, Pakistan to build $ 7.4 billion gas Pipeline
Pakistan Times Foreign Desk

NEW DELHI (India): India is expected to join a consortium involving Iran and Pakistan to build the dollar 7.4 billion Iran-Pakistan-India gas pipeline, construction of which is targeted to begin in 2007.

At the end of the two-day Indo-Iran Joint Working Group on the pipeline, New Delhi said that it would go to the Cabinet for approval for joining the project consortium once the three countries decide on the project framework by end of 2005.

"We will have no control over the price of gas if we were to merely sit on the fence and be just a buyer. We need to get involved with the project. Besides, we can ensure security of the pipeline in a much better way once we are part of the consortium operating the pipeline," a well-placed official was quoted as saying.

Two Pipelines

In all probability two pipelines would be laid, as a single 56-inch line would not be enough to meet the energy demand in India and Pakistan.

Meanwhile, Talmiz Ahmad, Additional Secretary (Internatinal Cooperation), Ministry of Petroleum and Natural Gas said India and Pakistan will by the month end or early September appoint separate financial consultants to suggest project structure and address technical, financial, commercial and legal aspects to make the project safe and secure.

Project Structure

Iranian Deputy Oil Minister M H Nejad Hosseinian said a project structure of the three countries would build separately the parts of the pipeline falling in their country or a consortium of Indian, Pakistani and Iranian companies along with international firms would build and operate the pipeline, would be in place by early November.

"Once there was agreement on the project structure between the three countries, the trilateral framework agreement would be finalized by the end of the current year", a Joint Statement issued after the JWG meeting said.

Talmiz Ahmad further said the two sides reviewed all aspects of the project and "we reiterated our commitment to carry forward with the project."

Change of guard in Iran

The visiting Iran deputy Oil Minister said the change of guard in Iran would not alter the policy of export of gas to India in its liquid form or through pipeline.

"This is a strategic project for Iran. I don't think there will be any change in policy as far as this project is concerned", he added.

India, he expressed has indicated a requirement of ninety million standard cubic meters per day of gas while Pakistan need another 60 MMSCMD.

Of the Capacity

"India and Pakistan have expressed higher requirement than the capacity of the 56-inch pipeline. The pipeline would have a capacity to carry on 120 mmscmd gas".

Designing the pipeline would take 12 to 18 months and actual construction would take between three and half years to four years, he added.

An Indian technical team would visit Tehran in the third week of this month to review the pre-feasibility report, prepared jointly by National Iranian Gas Export Co and BHP Bhilliton, said a news report adding, the next meeting of the India-Iran special JWG would be held in Tehran by the end of September.

"On the basis of the recommendation of the financial consultants, there would be a preliminary understanding on the preferred project structure early November 2005. In this context, subject to mutual convenience, the Iranian Minister of Petroleum would visit India at this time", added the Joint Statement.●