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Decision on Indo-Pak gas pipeline soon

March 29, 2007 17:52 IST

India and Pakistan will soon finalise the details of the pipeline that will bring natural gas from Iran, a top Pakistan government official said in Islamabad.

Pakistan's petroleum secretary Ahmed Waqar has also downplayed the reported differences between the two countries over the transportation tariff and transit fee to be paid by New Delhi to Islamabad.

"We have not received any such information officially," Waqar was quoted in a report by Daily Times.

He was replying to a query about the reported differences with India on transportation tariff and transit fee for Iran-Pakistan-India gas pipeline.

India and Pakistan have differences over transportation tariff for the 1036-km pipeline section falling in Pakistan and the transit fee payable to Islamabad.

New Delhi had suggested a transportation tariff of $0.50 per million British thermal unit while Pakistan wants $1.57 per mBtu.

Islamabad is seeking a transit fee of 10 per cent of the gas price at India border (price payable to Iran plus transportation cost) while India is willing to pay a maximum of 5 per cent of the gas price at Iran-Pakistan border.

The report also quoted Mir Muhammad Naseer Mengal, Minister of State for Petroleum and Natural Resources, as saying that Iran, Pakistan and India were committed to the gas pipeline project.

"The recent Indian announcement that it was committed to this project for its national requirement has encouraged us," he said.

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