Pakistan, India agree to build Iran Pipeline
NEW DELHI (India): India and Pakistan have agreed to begin work by 2007 on a pipeline to bring natural gas from Iran moving ahead with the project despite U.S. disapproval.
The 1,750-mile pipeline would help meet the growing energy needs of India's booming economy and provide Pakistan with hundreds of millions of dollars in fees.
The United States, which is trying to pressure Iran over its nuclear program has made its disapproval of the project clear to Pakistan and India.
Washington opposes investments that benefit Iran, which it suspects of trying to build atomic weapons.
Pakistani and Indian oil ministry officials met in New Delhi and agreed to complete a framework of the agreement by April of next year, the Press Trust of India news agency quoted India's Petroleum Secretary S. C. Tripathi as saying.
The Project
The proposed $4 billion pipeline would transport natural gas from Iran to India through Pakistan by the end of the 2010, the report said.
The pipeline is one of a number of initiatives designed to improve relations between Indian and Pakistan, longtime rivals over the Himalayan State of Jammu & Kashmir.
Iran proposed the pipeline in 1996, but the project never got off the ground mainly because of Indian concerns over its security in Pakistan.
India, whose economy has been growing at 6 percent annually for the past decade, imports more than 65 percent of its oil.
Construction Strategy
The two-day meet-ing of the India-Pakistan Joint Working Group (JWG) on the Iran-Pakistan-India (IPI) pipeline project ended in New Delhi on Saturday.
The joint statement issued after the meeting says the Pakistani side reaffirmed to their Indian side their considered view about the importance of the project for energy security and economic development of the two countries.
The Indian side summarized the discussion with the Iranian side during the second meeting of the Special Joint Working Group on pipeline cooperation in October 2005 and the discussion between technical groups from India and Iran on 13th December 2005. The Indian side informed that the Iranian side had identified certain blocks the gas from which would be dedicated to the proposed pipeline project.
The Iranian side also agreed to international certification of the reserves. The Iranian side also conveyed that it was in the process of preparing a development plan for these blocks and had invited India to participate in this development. The Pakistani side reiterated its commitment to the project and informed that a financial advisory consortium would be appointed shortly.
The Pakistani side conveyed that Pakistan had formally acceded to the Energy Charter Treaty as an observer. The Indian side reciprocated the sentiments of the Pakistani side pertaining to the project. Both sides agreed to set-up a Joint Technical Sub-Group which would meet at least once in a month alternately in each country to discuss various technical aspects relating to
the pipeline project such as technical specification, the quantum, of gas, buildup, pipeline route, transportation tariff and system configuration.
Both sides held discussions on project structure. It was agreed that, given its importance, the project structure would be examined further in the next JWG meeting at Islamabad.
Framework Agreement
Pakistan side acknowledged the receipt of the draft Framework Agreement proposal by the Indian side. It was agreed that since the Agreement required consensual view relating to project structure, it would be taken up for consideration after discussion relating to project structure had been completed satisfactorily among the three sides.
The two sides agreed that the matter of transit fees would be approached by both sides on the basis of “international best practice”. It was noted that there were various options available to determine transit fee. There was preliminary exchange of views on the broad principles determining this fees, which would be finalized after other relevant aspects of the project were taken into account.
The Pakistan side informed the meeting that TAP Project’s steering committee would meet in Ashgabad in January, new years. The Indian side stated that they had been invited to participate in the Project and agreed to attend the Steering Committee meeting as an “Observer”.
A Pakistan delegation may go to India early February, 2006 to review the progress in respect of the Project.
A tripartite meeting of the three Joint Working Groups may be held in early February, 2006 in Tehran to address the issues relating to the project, including an integrated feasibility study, project structure and tri-partite framework agreement. Next meeting of JWG would be held in early March 2006 in Islamabad. The Project Structure and the Framework Agreement would be
finalized by April 2006.
Online adds from New Delhi: India and Pakistan Saturday agreed to begin construction of the over 7-billion dollar Iran- Pakistan-India gas pipeline by mid-2007 so that the first gas flows by the end of 2010.
Initially, India will draw 60 million standard cubic meters per day from the over 2,100-km pipeline project and ramp it up to 90 mmscmd in next 2-3 years while Pakistan would start with 30 mmscmd and double its offtake by 2013, Pakistan’s Petroleum Secretary Ahmad Waqar said here.
The three countries, which till now have been meeting only bilaterally—India has held talks with Pakistan and Iran separately and Pakistan with Iran separately—will for the first time hold a trilateral meeting in early February 2006 in Tehran.
Secretary Petroleum Ahmad Waqar, who led the Pakistani said a technical sub-working group would be set up to sort out issues like transportation tariff, transit fee payable to Pakistan, system configuration, pipeline route and pricing mechanism.
The sub-group would meet on a monthly basis to resolve the issue before the next JWG meeting in early March 2006.•
(source: Pakistan Times)
The 1,750-mile pipeline would help meet the growing energy needs of India's booming economy and provide Pakistan with hundreds of millions of dollars in fees.
The United States, which is trying to pressure Iran over its nuclear program has made its disapproval of the project clear to Pakistan and India.
Washington opposes investments that benefit Iran, which it suspects of trying to build atomic weapons.
Pakistani and Indian oil ministry officials met in New Delhi and agreed to complete a framework of the agreement by April of next year, the Press Trust of India news agency quoted India's Petroleum Secretary S. C. Tripathi as saying.
The Project
The proposed $4 billion pipeline would transport natural gas from Iran to India through Pakistan by the end of the 2010, the report said.
The pipeline is one of a number of initiatives designed to improve relations between Indian and Pakistan, longtime rivals over the Himalayan State of Jammu & Kashmir.
Iran proposed the pipeline in 1996, but the project never got off the ground mainly because of Indian concerns over its security in Pakistan.
India, whose economy has been growing at 6 percent annually for the past decade, imports more than 65 percent of its oil.
Construction Strategy
The two-day meet-ing of the India-Pakistan Joint Working Group (JWG) on the Iran-Pakistan-India (IPI) pipeline project ended in New Delhi on Saturday.
The joint statement issued after the meeting says the Pakistani side reaffirmed to their Indian side their considered view about the importance of the project for energy security and economic development of the two countries.
The Indian side summarized the discussion with the Iranian side during the second meeting of the Special Joint Working Group on pipeline cooperation in October 2005 and the discussion between technical groups from India and Iran on 13th December 2005. The Indian side informed that the Iranian side had identified certain blocks the gas from which would be dedicated to the proposed pipeline project.
The Iranian side also agreed to international certification of the reserves. The Iranian side also conveyed that it was in the process of preparing a development plan for these blocks and had invited India to participate in this development. The Pakistani side reiterated its commitment to the project and informed that a financial advisory consortium would be appointed shortly.
The Pakistani side conveyed that Pakistan had formally acceded to the Energy Charter Treaty as an observer. The Indian side reciprocated the sentiments of the Pakistani side pertaining to the project. Both sides agreed to set-up a Joint Technical Sub-Group which would meet at least once in a month alternately in each country to discuss various technical aspects relating to
the pipeline project such as technical specification, the quantum, of gas, buildup, pipeline route, transportation tariff and system configuration.
Both sides held discussions on project structure. It was agreed that, given its importance, the project structure would be examined further in the next JWG meeting at Islamabad.
Framework Agreement
Pakistan side acknowledged the receipt of the draft Framework Agreement proposal by the Indian side. It was agreed that since the Agreement required consensual view relating to project structure, it would be taken up for consideration after discussion relating to project structure had been completed satisfactorily among the three sides.
The two sides agreed that the matter of transit fees would be approached by both sides on the basis of “international best practice”. It was noted that there were various options available to determine transit fee. There was preliminary exchange of views on the broad principles determining this fees, which would be finalized after other relevant aspects of the project were taken into account.
The Pakistan side informed the meeting that TAP Project’s steering committee would meet in Ashgabad in January, new years. The Indian side stated that they had been invited to participate in the Project and agreed to attend the Steering Committee meeting as an “Observer”.
A Pakistan delegation may go to India early February, 2006 to review the progress in respect of the Project.
A tripartite meeting of the three Joint Working Groups may be held in early February, 2006 in Tehran to address the issues relating to the project, including an integrated feasibility study, project structure and tri-partite framework agreement. Next meeting of JWG would be held in early March 2006 in Islamabad. The Project Structure and the Framework Agreement would be
finalized by April 2006.
Online adds from New Delhi: India and Pakistan Saturday agreed to begin construction of the over 7-billion dollar Iran- Pakistan-India gas pipeline by mid-2007 so that the first gas flows by the end of 2010.
Initially, India will draw 60 million standard cubic meters per day from the over 2,100-km pipeline project and ramp it up to 90 mmscmd in next 2-3 years while Pakistan would start with 30 mmscmd and double its offtake by 2013, Pakistan’s Petroleum Secretary Ahmad Waqar said here.
The three countries, which till now have been meeting only bilaterally—India has held talks with Pakistan and Iran separately and Pakistan with Iran separately—will for the first time hold a trilateral meeting in early February 2006 in Tehran.
Secretary Petroleum Ahmad Waqar, who led the Pakistani said a technical sub-working group would be set up to sort out issues like transportation tariff, transit fee payable to Pakistan, system configuration, pipeline route and pricing mechanism.
The sub-group would meet on a monthly basis to resolve the issue before the next JWG meeting in early March 2006.•
(source: Pakistan Times)
posted by Marko at 12/18/2005 07:18:00 PM
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