Pakistan Pledges Assurances for Iran-India Gas Pipeline

July 10, 2001 - 0:0
LONDON Islamabad has offered to address all security concerns about plans to build an overland natural gas pipeline from Iran to India, says Pakistan's Energy Minister Usman Aminuddin.

He also suggested that Pakistan will have the option to buy Iranian gas supplies from the pipeline to make up for any shortfall in his country's demand and that this may be included in a tariff structure, IRNA reported.

"We have provided assurances to the Iranian government. We said very clearly that whatever the security concerns are, whatever issues are involved, we will address them to the satisfaction of all concerned," Aminuddin said in an interview with ***Petroleum Argus**** published Monday.

Questioned about the viability of the long-standing scheme to build the pipeline through Pakistan given the political tensions with India, the energy minister said they would be hopefully discussed in the forthcoming summit between the two countries.

India's Petroleum and Natural Gas Ministry says that it is eager to move ahead with the Iran gas project but would want assurances from Pakistan that there would be no disruptions to supplies if the pipeline is build overland.

The pipeline through Pakistan is the "most viable route, but there are security concerns which need to be addressed," an Indian official from the ministry was quoted saying in this week's ***Middle East Economic Digest****.

Other proposals are being considered by Iran and India, including an estimated $ 3.3 billion deep sea line route, which will be much more expensive than an overland pipeline but which is estimated to be a cheaper alternative to using liquefied natural gas.

Asked about what kind of tariff structure would be made for the pipeline, Aminuddin said no decision had yet been made on commercial terms, but added that if Pakistan is unsuccessful in discovering its own gas "then we will have the option to buy gas."