India is looking forward to turn the India-Pakistan-Iran US$4 billion gas pipeline into a reality, for which officials from India and Pakistan are to hold their first set of talks on June 4-7. India and Pakistan will formally discuss the pipeline and issues related to it in concrete terms during the bilateral talks. The exact cost of the project will be determined by Pakistan's transit fee, therein. The pipeline will extend to about 1,724 miles across southwest Asia of which 472 miles would cross Pakistan.
India is looking forward to source gas at prices close to that of coal and not on par with costly fuels such as naphtha or liquefied natural gas. She plans to make initial imports of approximately 80 million cubic yards per day and increase that amount to some 130 million cubic yards per day over three to five years. Pakistan's desired gas requirements and timeframe are not yet known. However Pakistan is considering contracting its armed forces to ensure the security of the section of the pipeline crossing its territory for an annual fee of $100 million. The fee will be additional to the transit fee.
The United States, however, has expressed its reservation over the project due to current U.S. relations with Iran over nuclear proliferation.
Pakistan is also considering a US$3.5 billion, 1,000-mile long gas pipeline which would start in Turkmenistan, pass through Afghanistan and end up in Pakistan. The pipeline would have a capacity of some 40 billion cubic yards of gas annually. Another option Pakistan is weighing is importing gas from Qatar through an underwater pipeline.
25-May-05 
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