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Gas price issue delays pipeline

B. Muralidhar Reddy

India, Pakistan say Iran is quoting a high price for gas; further talks in July

ISLAMABAD: Iran, Pakistan and India on Tuesday failed to make headway on the price quoted by Teheran for the gas Iran intends to supply for the proposed gas pipeline.

The second trilateral joint working group (JWG) on the pipeline which concluded here was of the view that the gas pricing required "further study" and decided to meet in New Delhi in July for further discussions.

At a joint press conference along with delegation heads of Iran and India, the Pakistani Petroleum Secretary, Ahmed Waqar hoped that the contentious issue of pricing would be clinched at the next meeting.

Progress of talks

The progress of talks on the proposed pipeline, which has been pending for years, would be watched with interest since the Bush Administration is opposed to the project on the plea that it would not be prudent to pursue it in view of the Iranian nuclear programme.

Pakistan and India have repeatedly maintained that they were pursuing the Iranian pipeline as they required gas to meet their growing energy requirements and would be guided in their decision on the pipeline keeping in view their respective "national interests."

It was the price factor which was the stumbling block at the last meeting of JWG in Teheran. India and Pakistan believe that Iran is quoting a high price and in their respective presentations at Tuesday's meeting, they made a case for a "reasonable and affordable" gas price.

The net result of the decision, by the three sides to meet once again in July for further talks on the gas price, is that the project could not be expected to make any concrete progress for at least another two months.

The two-day meeting of the trilateral working group was attended by representatives of all the three countries.

Pakistan Petroleum Secretary, Deputy Oil Minister of Iran M H Nejad Hosseinian and Indian Petroleum Secretary M. S. Srinivasan led their respective delegations at the talks.

Draft for joint declaration

In his opening remarks at the news conference the Pakistan delegation leader said that there was broad "convergence" that the gas would be delivered at the respective borders. In other words for Pakistan gas would be delivered at its border on the Iranian side and for India on its border with Pakistan.

The meeting also agreed on appointment of a project coordinator whose job would be coordinate and implementation. They also exchanged joint declaration drafts on the pipeline to be signed at the level of Ministers at a later date.

In response to questions on U.S. "pressures," the Pakistan delegation leader maintained that any decision would be made in "national interest".

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