Iran assures India of secure gas supply

New Delhi (PPI) - Iran assured India it would provide full security for its multi billion dollar gas pipeline which will take its gas to Pakistan and India. Responding to Indian Prime Minister Manmohan Singh's appeal, Iran's Foreign Affairs Ministry said in a letter that it will would seek tri-partite mechanism to reach agreement to secure pipeline at Pakistan- India border. "Iran will seek to establish a trilateral mechanism to reaching an agreement with aim of securing delivery of gas at Pakistan- India border," Iran's Foreign Ministry said in its letter, Daily Express reported. "IPI is integrated project; therefore, all stages have to move forward with three countries' coordination. Any delay or technical problem caused by any of three will be subject to a fine to other two countries," it said. Last April, Pakistan agreed to consider equity participation by Gas Authority of India Limited in their leg of pipeline, but is yet to revert to India. Iran's non-paper also commits for first time that gas for pipeline would come from South Pars Phases 19, 20 & 21 and assures Iran would make good "any drop in gas pressure" from other phases and resources of South Pars. "There will be effort that all details of above-mentioned items are mentioned in relevant bilateral or trilateral contracts, along with practical mechanism," commits Iran in response to PM's request that supply security be guaranteed to turn pipeline into a confidence building measure. India has more or less agreed to give Pakistan transit fee of $200 million per year, equivalent to $0.60 per million British thermal unit to allow passage of pipeline through that country, Daily Express said. India and Pakistan agreed in February 2007 to pay Iran $4.93 per million British thermal units ($4.67/GJ). There was breakthrough in talks in April 2008 when Iranian President Mahmoud Ahmadinejad visited Pakistan and India. The pipeline likely to cost $7.4 billion will begin from Iran's Assalouyeh Energy Zone in south and stretch over 1100km through Iran. In Pakistan, it will pass through Balochistan & Sindh but officials now say route may be changed if China agrees to project.

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