12 July 2009
New Delhi will reconsider its position on the Iran-Pakistan-India gas pipeline on concerns over domestic gas needs.
The Indian Petroleum Ministry announced it would seek a review of its 2005 agreement on the project, saying domestic gas from the Krishna-Godavari field, pipeline security and gas-pricing mechanisms were a factor in the decision, The Indian Express newspaper reported.
"There is a need to develop a common understanding of the project and to evolve an agreement on the path ahead amongst the stakeholders," the ministry announced.
The ministry statement added that production from the Krishna-Godavari field "would be able to cater to the existing shortfall of natural gas across all sectors". It also said the price for gas from IPI should be comparable to other domestic sources.
The Pakistan Interstate Gas Co. and the Iranian National Oil Company signed an agreement in June to bring more than 750 million cubic feet of gas per day from Iran to Pakistan for the generation of 5,000 megawatts of energy.
Pakistani officials are considering whether to form a local or international consortium to move forward with plans for the Iran-Pakistan-India gas pipeline.
Asim Hussain, the top energy adviser to Islamabad, said the government would consider whether to form a consortium to include the provincial governments in Balochistan and Sindh for the project, or form a joint venture with an unnamed foreign company, Pakistan`s Daily Times reported.
Iran and Pakistan signed agreements on the IPI project in June. The pipeline would pass from the South Pars gas field in Iran to Pakistani markets.
Hussain said that Prime Minister Yousaf Raza Gilani would present the consortium options to lawmakers in Islamabad for review.
Gilani said he would consider offshore routes for IPI to allay parliamentary concerns over the price and security of the gas pipeline.
IPI is haunted by price concerns and volatility along the intended route for the pipeline, particularly in the Pakistani province of Balochistan.
Mubashir Hasan, a lawmaker with the Pakistani People's Party, has complained that Gilani's suggestions would cause undue delays to the project following the milestone agreement in June.
New Delhi will reconsider its position on the Iran-Pakistan-India gas pipeline on concerns over domestic gas needs.
The Indian Petroleum Ministry announced it would seek a review of its 2005 agreement on the project, saying domestic gas from the Krishna-Godavari field, pipeline security and gas-pricing mechanisms were a factor in the decision, The Indian Express newspaper reported.
"There is a need to develop a common understanding of the project and to evolve an agreement on the path ahead amongst the stakeholders," the ministry announced.
The ministry statement added that production from the Krishna-Godavari field "would be able to cater to the existing shortfall of natural gas across all sectors". It also said the price for gas from IPI should be comparable to other domestic sources.
The Pakistan Interstate Gas Co. and the Iranian National Oil Company signed an agreement in June to bring more than 750 million cubic feet of gas per day from Iran to Pakistan for the generation of 5,000 megawatts of energy.
Pakistani officials are considering whether to form a local or international consortium to move forward with plans for the Iran-Pakistan-India gas pipeline.
Asim Hussain, the top energy adviser to Islamabad, said the government would consider whether to form a consortium to include the provincial governments in Balochistan and Sindh for the project, or form a joint venture with an unnamed foreign company, Pakistan`s Daily Times reported.
Iran and Pakistan signed agreements on the IPI project in June. The pipeline would pass from the South Pars gas field in Iran to Pakistani markets.
Hussain said that Prime Minister Yousaf Raza Gilani would present the consortium options to lawmakers in Islamabad for review.
Gilani said he would consider offshore routes for IPI to allay parliamentary concerns over the price and security of the gas pipeline.
IPI is haunted by price concerns and volatility along the intended route for the pipeline, particularly in the Pakistani province of Balochistan.
Mubashir Hasan, a lawmaker with the Pakistani People's Party, has complained that Gilani's suggestions would cause undue delays to the project following the milestone agreement in June.
© Iran Daily 2009
