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Deora to discuss IPI pipeline with Pak

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BS Reporter New Delhi
Last Updated : Feb 05 2013 | 3:55 AM IST
Petroleum Minister Murli Deora will travel to Islamabad next week to iron out differences with Pakistan over the proposed $7.4-billion Iran-Pakistan-India (IPI) gas pipeline.
 
India missed the last few meetings on the pipeline during which Iran and Pakistan claim to have covered a lot of ground.
 
During his visit, Deora will also attend the meeting of Steering Committee on the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline scheduled to be held in Islamabad on April 23-24. India will formally become a partner in the project during the meeting.
 
"We will meet Pakistan after the TAPI pipeline meeting for resolving the issue of what fee needs to be paid to Pakistan for the gas that passes through that country through the pipeline from Iran," Deora said.
 
India has not attended talks on IPI project since mid-2007 as it first wanted to resolve the issue of transit fee (to ensure safety of the pipeline) payable to Islamabad for carrying the gas through that country. India and Pakistan have reached broad understanding on the transportation tariff payable to Pakistan.
 
"We were waiting for the elections in Pakistan to be over. Now that is over, we can take the pipeline project forward," Deora said.
 
Islamabad is seeking $0.493 per million British thermal unit (mBtu) as transit fee, while New Delhi has offered $0.15 per mBtu for providing security and right of way to the pipeline, officials said.
 
Industry observers say India had also gone slow on the IPI pipeline project due to pressure from the US, which is opposing the Iran nuclear programme. Indian government officials, however, denied it was under pressure from the US to withdraw from the project.
 
The US had suggested the TAPI pipeline as an alternative to the IPI pipeline.
 
The IPI pipeline would initially transport 60 million cubic metres per day (mcmd) of gas, which would be equally shared between Pakistan and India. The TAPI pipeline is scheduled to carry around 100 mcmd of gas, of which India wants 45 mcmd.
 
By 2012, India's demand for gas, which is a clean fuel, is projected to be around 280 mcmd, while domestic production is projected to be around 190 mcmd, said S Sundereshan, additional secretary in the petroleum ministry.

 

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First Published: Apr 15 2008 | 12:00 AM IST

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