With the arrival of Iran's Deputy Oil Minister Mohammad Hadi Nejad-Hosseinian in India, the two-day tripartite talks to resolve the issue of gas pricing and the project framework of the India-Iran-Pakistan pipeline is scheduled to be held here from Thursday.
When senior officials from India, Iran and Pakistan meet here for the two-day trilateral working group talks, it would be to resolve the pricing and project framework issues that are crucial to forward movement in the project.
There was considerable uncertainty with Pakistan officials voicing apprehensions about the fate of pipeline project in the wake of the Mumbai blasts and Iran making it known that the gas price offered by New Delhi and Islamabad was not acceptable.
But belying all uncertainties, a five-member delegation from Pakistan, headed by energy advisor to the prime minister, Ahmed Mukhtar and including Petroleum Secretary Ahmed Waqar, will be here for the talks.
Even though no resolution on the pricing and project structure is expected to emerge, considering Iran's keenness to get a gas price linked to crude oil prices and India and Pakistan eagerness to get energy supplies at prices that is more affordable, the fact that the dialogue is continuing is a very good sign.
The last meeting of oil secretaries in Islamabad on May 22-23 was broken off after Iran sought dlrs 7.2 per million British thermal unit (mBtu), with a three percent annual increase, more in tandem with the international crude oil price.
However India indicated its willingness to pay not more than dlrs 4.25 dollars per mBtu for gas delivered at the border.
India wants to import 90 million standard cubic meters (mmscmd) of gas per day from Iran through the 2,100 km pipeline while Pakistan has indicated a requirement of up to 60 mmscmd.
The price structure would be the final clinching point as it will determine the multiple of quantity that India as also Pakistan would be able to import given that affordability is a key factor for sustained offtake of supplies.
© IRNA 2006
