Saturday, April 26, 2008, Rabi-ul-Sani 19, 1429    

IPI gas pipeline project to be completed by 2012
Pak, India agree on transit fee, transportation tariff

Sharafat Kazmi

Islamabad—Pakistan and India have principally agreed to resolve  fundamental issues of Iran-Pakistan-India gas pipeline project and committed to start the construction work next year.

This was stated by Minister for Petroleum and Natural Resources Khawaja Muhammad Asif and his Indian counterpart Murli Deora at a joint news conference after holding lengthy talks on the IPI project here Friday.

Khawaja Muhammad Asif said that three basic issues including structure of the pipeline company (which will execute and manage the project), transportation tariff and transit fee have been discussed. Consensus was emerged on the principles on which the bilateral agreement will be concluded.

Both the Ministers agreed to consult with their respective governments for an early conclusion of the agreement on these issues.

The project named as “PEACE PIPELINE” will be completed in September 2012 at a total cost of 7.5 billion dollars and Pakistan will contribute three billion dollars.

The Ministers acknowledged that this project is of immense economic and strategic value for both countries. It will add a new dimension to bilateral relationship and go a long way in improving the quality of life of the people of the two countries. He said Iran will supply 2.46 billion cubic gas per day and both Pakistan and India will get equal share.

Khawaja Asif said that with the completion of this project a new era of economic and development will usher in the region. He said the Pipeline will not only meet the need of the energy, but will also strengthen the ties between the two neighbourly countries and add new dimension to Indo-Pak relationship.

The Indian Petroleum Minister Mr. Murli Deora said he held very fruitful discussions with his Pakistani counterpart in a positive spirit. He said we have reached to the agreement principally and hoped that we can go ahead with the project.

He said his country believes that close economic cooperation with its neighbours is not only a necessity, but it also helps the states interests that strengthen the overall relationship.

To a question, he said India is in no communication with US on the gas pipeline project.

Regarding security Khawaja Asif said there is no security concern to the pipeline as we have made precatuionary measures to protect it.  He said the gas pipeline will come from Iranian Balochistan along with coastal route and joint Nawab Shah in Sindh.