[A-List] India Plans Talks with Pakistan over Stalled Iran Gas Pipeline + China Ready to Join Tri-Nation Gas Project If India Opts Out

["Yoshie Furuhashi" <critical.montages@xxxxxxxxx>]

The Indians had better make up their mind.

<http://www.bloomberg.com/apps/news?pid=20601091&sid=aBGH1P17uJtw&refer=india>
India Plans Talks With Pakistan Over Stalled Iran Gas Pipeline

By Manash Goswami

March 28 (Bloomberg) -- India, Asia's third-largest oil consumer,
plans to resume talks with Pakistan over a pipeline to transport
natural gas from Iran after more than a decade of delays, Oil Minister
Murli Deora said.

Engineers from India will meet their counterparts in Pakistan next
week when the new government takes office in Islamabad, Deora said in
an interview at his ministry in New Delhi yesterday. Iran, which has
the world's second-largest oil and natural gas reserves, agreed to
sell gas to India in 1995.

The $7.4 billion project stalled because India couldn't agree with
Iran on the price for the gas or the fees it will pay Pakistan for
transporting the fuel. The 2,100-kilometer (1,305- mile) pipeline was
shelved when the nuclear-armed neighbors came to the brink of war
after a terrorist attack on India's parliament in 2001.

``We are very keen that the project goes through,'' said Deora, 71.
``In the last two months we planned four trips to Pakistan to settle
small issues. Let them form the government and let there be an oil
minister and we are ready to come.''

India, Asia's third-largest economy, can produce only half the gas it
needs to generate electricity, causing blackouts and curbing economic
growth. Demand may more than double to 400 million cubic meters a day
by 2025 if the economy grows at the projected rate of 7 to 8 percent a
year, according to the oil ministry.

Since 1995, gas prices have risen almost sixfold. Natural gas for May
delivery was little changed at $9.687 per million British thermal
units at 9:40 a.m. Singapore time on the New York Mercantile Exchange.
Yesterday, the contract rose as much as 8.5 cents, or 0.9 percent, to
$9.77 per million Btu.

Pakistan Delay

Talks are more likely to progress after Pakistan elected Yousuf Raza
Gillani as its new prime minister this week, ending six months of
political instability that culminated with the suspension of the
constitution in November and the assassination of former Prime
Minister Benazir Bhutto in December.

Iran plans to start exporting gas to Pakistan in 2011. Iran has
completed half the pipeline, which can carry 110 million cubic meters
of gas a day, National Iranian Gas Co. said this month. India uses
about 108 million cubic meters of gas a day, according to a BP Plc
report.

The U.S., seeking to isolate Iran because of its pursuit of a nuclear
program, had wanted the project scrapped. Deora said the U.S. is not
opposed to the project.

``The Americans have not told us in clear terms that you should not
support or go ahead with this pipeline project,'' Deora said. ``They
are our largest trading partner. But that does not mean they can bully
us on where to buy and where not to buy.''

To contact the reporters on this story: Manash Goswami in New Delhi at
mgoswami@xxxxxxxxxxxxxx
Last Updated: March 27, 2008 22:14 EDT

<http://www.hindu.com/thehindu/holnus/000200803251410.htm>
China ready to join tri-nation gas project if India opts out

Islamabad (PTI): China has told Pakistan it is ready to join a gas
pipeline project to import Iranian gas if India decides not to be part
of the multi-billion dollar venture.

Pakistan and Iran have finalised a gas purchase agreement while India
is yet to complete modalities for joining the project mainly due to
differences with Pakistan over the transit fee to be paid for the gas
transported through Pakistani territory.

Iran had been asked by Pakistan earlier this month to finalise the
Iran-Pakistan-India pipeline project by April. Iran said it was
holding final talks with India to persuade it to join the project.

Iran had also told Pakistan that if India continued to show its
reluctance to join the project "under US pressure", Tehran would
invite Beijing to join the venture, the influential Dawn newspaper
reported Tuesday.

"The Chinese have told us that they are ready to join it," a source in
the petroleum and natural resources ministry told Dawn. Pakistan has
asked Iran to enhance the volume of gas to be supplied by 50 per cent
if India opts out of the project.


-- 
Yoshie
<http://montages.blogspot.com/>