Iran pipeline to be built in segments: Pak daily

LONDON, January 24 (IranMania) - Iran, Pakistan and India are likely to adopt a segmented approach on the construction of over US$ 7 bln trans-Pakistan gas pipeline to ward off effects of possible US sanctions against Iran over the nuclear issue.

According to Pakistan's leading English newspaper, "Dawn" on Tuesday, that however, Pakistan's Ministry of Petroleum and Natural Resources was not yet clear if such an approach could help parry similar UN sanctions.

The segmented approach means construction of the project by the three countries within their respective territories.

The 2,670-kilometer pipeline would have about 1,115-km length in Iran, 705-km in Pakistan and 850-km in India.

The Iran-Pak Joint Working Group held two meetings on Monday and Tuesday in Islamabad and discussed matters relating to the project's structure, feasibility, gas pricing and delivery points and pipeline routes.

Deputy Minister for Oil Hadi Nejad Hosseinian, at the head of a six-member delegation, represented Iran, while Secretary Petroleum and Natural Resources Ahmad Waqar represented Pakistan at the talks.

Aired in mid-90s, the project could not be realized due to seething Pak-India tensions.

However, after the start of a peace process between the two countries in 2004, things have improved. The three countries have made significant progress towards inking a final agreement on the project.

The work on the project could start in 2007 and complete by 2010, reports say.

It is aimed at supplying gas to both India and Iran to meet their growing energy needs.

Pakistan will get annually US$ 600 mln as transit fee after the pipeline is laid. Likewise, India will save US$ 200 mln per annum vis-a-vis gas import.