At the second meeting of the India-Pakistan joint working group on the pipeline project in Islambad earlier this month the two sides agreed to approach Iran for third party certification of gas reserves, confirmation of allocation of gas reserves for the project, identification of alternate/back up gas reserves and time line for the development plan of allocated reserves, sources said.
Iran holds the world's second largest gas reserves after Russia but the reserves have not been independently certified.
Iran had completed in-house studies on gas reserves, which showed that after allowing for gas re-injection in wells for boosting oil production and for domestic consumption needs, it would have 14 trillion cubic metre gas reserves available for exports, including the demand for the IPI project.
Sources said the Iranians have designated Phase 9, 10, 15, 16, 17 and 18 of the South Pars Field for the IPI project, which is to transport 150 million standard cubic meters per day of gas from the Persian Gulf to Pakistan and India.
Pakistan's Minister for Petroleum and Natural Resources Amanullah Khan Jadoon was likely to visit New Delhi on October 2-3 for further discussions on the project and the two sides would exchange broad outlines of the project structure at the next JWG meeting in the second week of November, they said.
Pakistan has indicated that on the basis of their revised gas demand projections, they would now need 30 million standard cubic meters per day (mmscmd) of gas in 2010-11 which would ramp upto 60-70 mmscmd in 2014-15.
India has stated a minimum requirement of 90 mmscmd of gas through the proposed pipeline. Sources said the two sides agreed that the project would have inbuilt internationally acceptable pipeline safety design features which would ensure a safe and secure world-class project.
While India has already appointed Ernst & Young as its financial advisor to advise on project structure, pipeline security matters covering all aspects and basis for gas price negotiations with Iran, Pakistan would engage a consultant by end of this month.
The three sets of bilateral dialouge between India and Pakistan, India and Iran and Iran and Pakistan would culminate into a tripartite agreement by mid-December, sources added.
