31-08-08 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 that it will week a tri-partite mechanism to reach agreement to secure the pipeline at the Pakistan-India border.
"Iran will seek to establish a trilateral mechanism to reaching an agreement with aim of securing delivery of gas at the Pakistan-India border," Iran's Foreign Ministry said. "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 the other two countries," it said.

Last April, Pakistan agreed to consider equity participation by Gas Authority of India Limited (GAIL) in their leg of the pipeline, but is yet to revert to India. Iran's non-paper also commits for the first time that gas for the 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 an effort that all details of above-mentioned items are mentioned in relevant bilateral or trilateral contracts, along with a practical mechanism," commits Iran in response to the PM's request that supply security be guaranteed to turn the pipeline into a confidence building measure.

India has more or less agreed to give Pakistan a transit fee of $ 200 mm per year, equivalent to $ 0.60 per mm Btu to allow passage of the pipeline through that country. India and Pakistan agreed in February 2007 to pay Iran $ 4.93 per mm Btu ($ 4.67/GJ). There was a breakthrough in talks in April 2008 when Iranian President Mahmoud Ahmadinejad visited Pakistan and India.
The pipeline -- likely to cost $ 7.4 bn -- will begin from Iran's Assalouyeh Energy Zone in the south and stretch over 1,100 km through Iran. In Pakistan, it will pass through Balochistan and Sindh, but officials now say the route may be changed if China agrees to the project.