September 06, 2008

Pakistan invites India for talks on IPI pipeline project

IRNA reported that, in a major development that could result in a breakthrough, Pakistan has invited India for talks on finalizing the USD 7.4 billion Iran Pakistan India gas pipeline deal.

Mr Murli Deora union minister of petroleum & natural gas said that "I received an invitation from Pakistan's energy minister to visit Islamabad to finalize the transit fee issue so that the IPI pipeline deal could be wrapped up soon."

Mr Deora said that he hoped to resume negotiations on the issue as soon as the new government in Pakistan was installed. He added that "I will visit Pakistan sometime next month to hold talks and hope to wrap up the issue of transit fee and related matters as soon as possible and sign a formal agreement to make the project happen."

It may be noted that India and Pakistan had, in principle, reached an agreement on the transportation charges that New Delhi would be paying to Islamabad. A point of mutual concern for both nations was the incorporation of a new clause sought to be incorporated by Iran on revision of natural gas price every 3 years.