India in touch with Iran on the gas pipeline deal

Following a deal between Iran and Pakistan for the construction of natural gas pipeline, India on Thursday said it was in consultation with the Iranian government to address “concerns about pricing and security” pertaining to the pact which originally involved India.

“... As far as India is concerned, we are in consultation with the government of Iran. We have certain concerns. Concerns about pricing, concerns about security, which have been taken up with the government of Iran,” External Affairs Minister S.M. Krishna said in New Delhi.

Pakistan on Tuesday signed a $7.5 billion deal with oil-rich Iran, paving the way for laying the much-delayed natural gas pipeline that was originally envisaged to extend up to India. Noting that India was currently not part of the deal, Pakistan Petroleum and Natural Resources Minister Syed Naveed Qamar, in a statement in Islamabad, said the heads of agreement dealt with transporting gas meant for India through Pakistani territory if and when India decided to join the project.

Under the heads of agreement, Pakistan will have the right to charge transit fee for gas transported to India. India has been apprehensive towards the project as the pipeline will pass through the volatile region of Balochistan and the surge in militancy in Pakistan has only increased India’s security concerns about the pipeline.

The $7.6bn project is crucial for Pakistan to avert a growing energy crisis already causing severe electricity shortages in the country of about 170mn.

Pakistani Petroleum and Natural Resources Minister Naveed Qmar hailed the signing of the deal in Turkey as an “historic achievement.” Under the deal, 750mn cubic feet of gas will be pumped to Pakistan daily from Iran by mid-2015.

- Asian Tribune -