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August deadline set for India-Iran pipeline pact

Last updated on: May 02, 2006 19:24 IST

Iran on Tuesday said India had not been 'ousted' from the proposed $7-billion tri-nation pipeline, even as it set an August deadline for New Delhi to sign an agreement on the project.

"I want to clarify that contrary to reports, India has not been edged out of the Iran-Pakistan-India pipeline. We continue to engage in discussions leading to tri-nation ministerial meeting next month," Iran's Deputy Oil Minister Hadi Nejad-Hosseinian told reporters after meeting Petroleum Minister Murli Deora in New Delhi.

He said against the capacity of 110 million standard cubic meters per day, Pakistan has sought between 30 to 60 mmscmd of gas and India wants 90 mmscmd. Besides, 30-35 mmscmd of gas would be transported through the proposed pipeline from gigantic South Pars gas field to eastern regions of Iran.

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  • "The demand figures mentioned ramp up over a period of five years. Initially, a single pipeline (meeting requirements of eastern Iran, Pakistan and India on pro-rata basis) would suffice and a parallel line can be laid as demand rises," he said.

    Deora said India favoured implementation of a single pipeline first and upon its successful operation a second line could be laid. He also ruled out any pressure from the United States for pulling out of the project. "Not at all. I don't think the US is pressurising. I don't think America can pressurise us."

    The Iranian minister said that India has to agree on the pipeline by August, failing which Tehran would proceed with bilateral exports to Pakistan.

    "We have approval to expedite laying a pipeline to the eastern part of Iran. So if India delays joining the project, we would go ahead," Hosseinian said.

    The Iranian minister, however, categorically ruled out building separate pipelines to supply gas to India and Pakistan.

    "There will be a single pipeline meeting demand of all and if need be a second pipeline would be laid, which too would meet all incremental demand in the three countries," he said.

    He said oil secretaries of the three countries would meet in Islamabad on May 22-23 to sort out pricing of the gas and culminate discussions into a tripartite ministerial meeting in Tehran in June.

    The tripartite agreement would address the issue of inter-government guarantees and obligations, security of the pipeline and how the pipeline would be built, operated and maintained.

    Petroleum Secretary M S Srinivasan said: "We have had discussions (with an Iranian delegation) yesterday evening and today and nowhere did we get an impression that we are out of the pipeline."

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