IPI to be rewrited as bilateral gas pipeline project

Islamabad: Pakistan and Iran agreed to rewrite Iran-Pakistan-India (IPI) as bilateral gas pipeline project with some minor changes in the provisions already signed for it on tripartite basis.

During talks Tehran and Islamabad reached to a conclusion here that IPI will be reviewed to treat and rewrite as Iran-Pakistan (IP) gas line. However, the two sides agreed to keep entry option open for India.

On the issue of gas line, the senior officials of the Petroleum and Natural Resources (MP&NR) assisted Foreign Minister Shah Mahmood Quershi who also has additional charge of the Petroleum Ministry. Sources said during the talks with visiting Iranian Foreign Minister, Pakistan's side showed willingness to buy 100 percent gas to be supplied by Iran through IP unless India becomes a party to the project.

'We have conveyed to visiting Iranian Foreign Minister that Pakistan is willing to buy 100 percent gas to be imported from his country once IP project comes into existence,' said a senior Pakistani official who was the part of the team which discussed gas pipeline issue with the visiting Iranian FM. The two sides also agreed that Pakistan and India will buy equal gas from the gas line whenever New Delhi comes to join the project.

Iran is demanding of Pakistan to reopen all provisions of the gas pipeline as now only Islamabad and Tehran were party to it. Pakistan is more than willing to complete gas line on bilateral basis but it does not want to open all issues including gas pricing system for the project. The concerned officials in Islamabad are of the view that opening up of all issues including gas pricing system for turning IPI into IP will cause further delay to the project.

Last month, a Pakistan's official delegation had visited Tehran to convey Islamabad's willingness to expedite work on the gas line but it will not like to reopen agreed issues. The two sides could not make any progress during Tehran talks.

India has been a stumbling block as far as gas line project is concerned. It remained undecided despite facing acute gas shortfall. New Delhi's policy of wait and see not only delayed the project for years but also pushed the cost of the project from $2.5 billion in 1995-96 to $7.5 billion in 2007-08.

Finally Iran and Pakistan have reached to a conclusion that wait for New Delhi's positive response was not in their interest and they should go for the project on bilateral basis.