'IPI pipeline a peace pipeline'

Pakistan Prime Minister Shaukat Aziz declared the Iran-Pakistan-India (IPI) pipeline a "peace pipeline" and said that after his talks with Indian Prime Minister Manmohan Singh and Petroleum Minister Murli Deora, both countries had decided to go ahead with the pipeline.

Speaking to a television channel, Aziz said the project would lead to an "overall improvement" in Indo-Pak ties and help achieve energy security.

"What we are trying to do is have a linkage between Iran, Pakistan and India, and this will be much more than an energy relationship. We have coined it the peace pipeline," Aziz said after meeting his Indian counterpart Manmohan Singh on the sidelines of the Saarc Summit here.

"Inter-dependencies and linkages" created by the pipeline would "create an atmosphere which will help in the overall improvement of relations," he said.

"We have decided to move ahead with this (project as it) is in our national interest and we are at various stages of negotiations," he said.

"I remain optimistic that this project is a win-win for all and shall see the light of day," he said.

He added that the pipeline is of "immediate importance to all three countries" as energy security is one of the major challenges facing the region. "As our economies are growing very rapidly, we need additional hydrocarbons and energy resources. Iran is one country which can supply this to us," he said.

Asked about US opposition to the project, he said the pipeline was in the interests of India and Pakistan and "our public opinion, our governments, our people want us to pursue our national interests and we will pursue that."

According to the Indian side, the main stumbling block would be the pricing of the gas which is to be imported.