ISLAMABAD - United States sanctions against Iran could create hurdles in carrying out Iran-Pakistan-India (IPI) gas pipeline project, said Managing Director Inter-State Gas System Syed Hassan Nawab. While addressing the Oil and Gas Pakistan 2009 Forum here on Saturday, he said that these sanctions on Iran might create problems for Pakistan in generating funds for the said project. He said that earlier India was also taking interest in the project but presently it had kept silence and was giving no positive or negative notion. Pakistan's demand from India to pay $ 2 per mmbtu as transit fee could be the reason behind its silence, as India might not be considering the project cost-effective for it. Pakistan had communicated to Iran that it had no objections to provide India the passage for the gas pipeline from their country against charging transit fee. He noted that now the prices between oil and gas had little difference in global market and therefore Iran wanted to link to 70 per cent of crude oil price. Pakistan has made its offer against their demand so as soon as the price is finalized, the project would be inked. He further said that the hurdles in starting the project, he could foresee, were firstly the sanctions imposed on Iran by the United States and the security situation in Balochistan. Iranian gas will support to generate 5000 MW electricity per day and Pakistan Electric Power Company (PEPCO) had forecasted that the country would require adding 11000 MW in the existing system by 2020. Pakistan is also working on Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project and the said project could not be feasible unless the law and order situation in Afghanistan improves. Secretary Petroleum Mehmood Saleem Mehmood said that the government was committed to providing level playing field for the oil industry in Pakistan. He said that the government had recently increased the margins of Oil Marketing Companies (OMCs) from 3.5 to 4 per cent and dealers margin 4 to 5 per cent due to reduction in global oil prices. Government is working to introduce 10 per cent blended ethanol motor gasoline that would secure around $ 11 billion import bill. He also said that Iran had committed 55,000 barrels per day of crude oil to Pakistan on deferred payment for three months' period. The Federal Minister for Planning and Development Makhdoom Shahabuddin said on the occasion that the government was well cognizant of the potential of the Oil and Gas sector and the ability of the industry to give a major boost to the investment climate in the country. One milestone, he said, for the current democratic government was the revision of the Petroleum Policy tailored to suit the companies already operating in Pakistan and particularly friendly for those organizations who intended to invest in the Oil & Gas sector in Pakistan. The government, he said, would like to invite such companies to come and talk business with them, and "I can assure you that we shall be talking your language when it comes to creating a win-win situation for all parties," he added. He said that Pakistan would emerge as one of the most important energy corridors of South Asia and the Middle East benefiting from its unique geographic position. The Minister thanked all the existing foreign companies operating in Pakistan and discovering hydrocarbon reserves in many parts of the country. He further said that Pakistan would like to seek fresh proposals in the exploration and production work in the oil & gas sector. "We are keen on providing every possible assistance and incentives, and package a deal that will benefit both those who desire do business with Pakistan and also enable our country to further exploit the enormous potential we have for exploratory work in the country". Managing Director MOL Janos Feher said that security situation in working areas of oil and gas exploration was not the best. There were security threats for the operators at the sites and there were also some issues of social welfare and image of Pakistan was not the best and public relations needed to be improved and security issues should be addressed, Feher said. President Bosicor Oil Pakistan Limited Zafar Haleem said that the country at present required gas to handle power crisis. IPI gas pipeline project could balance the situation, he said adding that there was also a lot of potential in LPG that could help overcome the energy crisis in Pakistan.