Pakistan and Iran are going to hold another round of talks over $7 billion Iran-Pakistan-India (IPI) gas pipeline deal in Tehran on May 26, a senior official in Petroleum Ministry told Thursday.

He said two sides have proposed to hold talks on IPI so that the final arrangements could be made on signing of Gas Sales Purchase Agreement (GSPA).
However, he added, signing of GSPA on gas pipeline deal could be delayed due to political uncertainty followed by the resignation of Petroleum Minister, Khawaja Asif of Pakistan Muslim League (N). He was of the view that the process of proposed agreement on IPI gas deal could be affected due to absence of the petroleum minister.
He said the Pakistan and Iran were supposed to sign the GSAP on IPI without making any other round of talks, and during the Iranian President visit to Pakistan on April 28, two sides also agreed to sign deal within 45 days. He said that these talks could be for making arrangements for signing the GSPA on IPI that would be signed by petroleum secretaries, ministers and heads of states of two countries.
He said that Pakistan and Iran have finalized the GSPA on IPI during the caretaker government’s tenure and Economic Coordination Committee (ECC) of the cabinet approved the draft of the GSPA.
He said that energy requirements in Pakistan are increasing day by day and gas demand in Pakistan is expected to be 26 Million Metric Standard Cubic Meter per day (MMSCMD) in 2011-12 and 77 MMSCMD in 2015.
He said that the energy supply mix in Pakistan stood at 48.6 percent gas and 30 percent oil in 2006-07. Power sector of Pakistan consumes the largest portion of gas at 35.5 percent.
Consortium for carrying out the project: Official said that Asian Development Bank (ADB), gas transmission and marketing company in India, GAIL, and Pakistani company Interstate Gas Company Limited (IGCL) could work in a joint venture to materialize the project.
He said that Indian Petroleum Minister, Murli Derua, during his talks on transit fee on IPI had conveyed that Indian company GAIL was interested in this project.
Official said that ECC has authorized IGCL to sign the agreement with Iran and Pakistani government and is going to convert IGCL into a corporation in this regard. He said that Asian Bank country director has also conveyed Pakistan that it is ready to finance the project.
(Source: Daily Times) -