India and Pakistan today began final round of discussions to resolve differences on the 7.4-billion dollar Iran-Pakistan-India gas pipeline before the three nations sign a deal in July. Petroleum secretary M S Srinivasan and his Pakistani counterpart Ahmad Waqar led discussions on the rates to be paid to Islamabad for allowing the passage of the pipeline.
Iranian officials will join them on Thursday for finalizing details that would pave the way for a tri-nation ministerial level meeting in the second half of July, official sources said.
The proposed pipeline will initially carry 60 million cubic meters of gas, split equally between Pakistan and India. The delivery point would be at the Iran-Pakistan border but India is yet to finalize the contract for the transportation costs and the transit fee with Pakistan.
Pakistan is seeking a transportation tariff of 0.70-0.75 dollars per million British thermal unit, while New Delhi is willing to pay no more than 0.55 per mBtu (220 million dollars annually).
On transit fee, Islamabad is seeking 0.493 dollars per mBtu, while New Delhi has offered 0.20 dollars per mBtu.
The trilateral talks tomorrow would focus on changes sought by Iran in the gas pricing. Tehran wants the price formula for the gas revised every three years instead of the previously agreed periodicity of seven years, sources said.
New Delhi and Islamabad have agreed to the Iranian formula of selling natural gas at 4.93 dollars per mBtu.
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