Will start gas supply to India & Pakistan by 2011: Iran

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In a major breakthrough in the long-delayed $7 billion Iran-Pakistan-India pipeline , Pakistan and India have agreed on the gas transportation charges.

Under the agreement, Pakistan will be paid a transportation tariff of 70-75 cents per million British thermal unit, or mBtu, of gas.

The 2,100 km long pipeline is being built despite objections from the US, which is reluctant to encourage business with Iran given its aggressive nuclear policy.

Iran has said that it will start the gas supply to India and Pakistan by 2011 reports Newswire 18. Meanwhile, the oil minister said that the transportation tariff for Iran gas will be USD 0.6-0.7/mBtu.

 

Meanwhile, according to sources, the Prime Minister's Office or PMO has written to the oil minister on the gas pricing issue. They added that the Cabinet Secretary will evolve a consensus on the said issue.

According to sources, the PMO said that the fertilizer sector should get priority on gas allocation while the power sector should be encouraged to rely on coal.

The fertilizer Minister, has told the PMO that they are willing to pay up to USD 5/mBtu for gas, the sources added.

Meanwhile, according to PTI reports, Iran has said that it will consider selling LNG to private Indian firms if there is no agreement with India on pricing.