Iran offers to pay for large part of proposed gas pipeline to India

Nov 24, 2003 01:00 AM

The Iranian government offered to pay for the bulk of a proposed $ 3 bn natural gas pipeline from Iran to India through Pakistan, in a bid to get New Delhi to sign onto the project.
"The Iranian government is willing to bear 60 % of the total cost of the pipeline," Iran's Deputy Foreign Minister Mohammad H. Adeli said in New Delhi. Iran could guarantee India "a long-term, credible gas supply at the lowest cost and provide an assurance regarding the safe delivery of the gas," Adeli added.

The 2,600 km (1,600-mile) pipeline would save India around $ 300 mm a year in energy costs, he said. The project was proposed in 1996, but was shelved because of persistent tensions between India and Pakistan, who are in a decades-old dispute over the Himalayan region of Kashmir.
India's security fears remain the stumbling block to the project. New Delhi fears that a gas pipeline through Pakistan could be sabotaged, or be used as a political weapon by Islamabad. But renewed talk of the pipeline coincideswith recent peace moves by India and Pakistan. Last month, Pakistan said it would guarantee India a secure gas supply if it joined the project.

Experts say the project would benefit all three countries. Iran wants a market for its large natural gas reserves.
The pipeline would help India overcome its energy deficit, while Pakistan also would have access to the gas, and earn about $ 600 mm annually in transit fees.

Source: AP WorldStream via Comtex
Market Research

The International Affairs Institute (IAI) and OCP Policy Center recently launched a new book: The Future of Natural Gas. Markets and Geopolitics.


The book is an in-depth analysis of some of the fastest moving gas markets, attempting to define the trends of a resource that will have a decisive role in shaping the global economy and modelling the geopolitical dynamics in the next decades.

Some of the top scholars in the energy sector have contributed to this volume such as Gonzalo Escribano, Director Energy and Climate Change Programme, Elcano Royal Institute, Madrid, Coby van der Linde, Director Clingendael International Energy Programme, The Hague and Houda Ben Jannet Allal, General Director Observatoire Méditerranéen de l’Energie (OME), Paris.

For only €32.50 you have your own copy of The Future of Natural Gas. Markets and Geopolitics. Click here to order now!


Upcoming Conferences
« June 2019 »
1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30

Register to announce Your Event

View All Events