Iran General NewsIndia, Pakistan yet to agree transit fee for Iran...

India, Pakistan yet to agree transit fee for Iran gas

-

Reuters: India and Pakistan have agreed on principles to calculate a transportation fee for Iranian gas to be supplied via a pipeline, but are yet to agree on the transit fee, a top Pakistani official said on Thursday. By Nidhi Verma

NEW DELHI (Reuters) – India and Pakistan have agreed on principles to calculate a transportation fee for Iranian gas to be supplied via a pipeline, but are yet to agree on the transit fee, a top Pakistani official said on Thursday.

“We haven’t agreed upon a formula but we have agreed on principles under which the transportation tariff will be computed,” Mukhtar Ahmed, energy adviser to Pakistan’s prime minister, told reporters.

“All the elements that contributed to the cost of the infrastructure will need to be taken into account, and clearly that cost would need to be recovered through a transportation tariff,” he said.

Indian, Pakistan and Iranian officials are meeting in New Delhi to discuss modalities of the proposed gas pipeline.

They were yet to reach an agreement on a fee for the gas moving across Pakistan into India, Ahmed said.

“But we do not expect this will be a roadblock in our way to concluding agreements regarding this project,” he said.

Transportation tariff and transit fees will be key in determining the delivery price of Iranian gas for India, and its acceptance by industries.

Ahmed said he hoped that a final agreement on the trination pipeline was just weeks away.

“The discussions today has gone very well… so I think it is a matter of weeks before we are able to conclude agreement on this project,” he said after the meeting.

Pakistan’s Energy Secretary Ahmad Waqar said Iran had proposed a new gas price review clause, which needed further discussions. He did not elaborate.

Hajjatollah Ghanimifard, international affairs director of the National Iranian Oil Company said: “Price revision is a common clause in any long term contract…this by no reason means that we are changing the formula (agreed on January 25).”

India, Pakistan and Iran are negotiating a proposed $7 billion gas pipeline deal for supplies of natural gas from Iran to feed the energy-hungry south Asian economies.

Iran has the world’s second-largest gas reserves after Russia. However sanctions, politics and construction delays have slowed its gas development, and analysts say Tehran is unlikely to become a major exporter for a decade.

The proposed pipeline will initially carry 60 million cubic metres (2.2 billion cubic feet) of gas daily to Pakistan and India, half for each country. The capacity would be raised to 150 million cubic metres at a later date.

The delivery point would at the Iran-Pakistan border.

Latest news

The Role of Students and Universities in Iran’s Nationwide Uprising

In the national uprising of the people of Iran, which started in mid-September this year, the students played a...

Snapback Sanctions, a Must Response to Iran’s Human Rights Abuse and JCPOA Violations

The protests in Iran have been going on for more than two months, even though the regime is cracking...

Growing Disintegration Among Iran Regime’s Forces

Iran has been shaken by a wave of nationwide protests since mid-September. The trigger was the death of the...

Grim Tidings for Iran’s Regime After Approval of UN Fact-Finding Mission

After many discussions and debates, the United Nations Human Rights Council has approved a fact-finding mission to investigate the...

Iranian People’s Resistance Changed the Appeasement Policy

Soon after the new US government started its obligations in January 2021, hand in hand with the European governments...

Khamenei’s Disgraceful Campaign Against Piranshahr and Javanrud, Who Will Be the Loser?

On the 67th day of Iran’s revolution, the Iranian regime attempted to put a halt to the protests in...

Must read

Saudi warns Iran over Lebanon ‘coup’

AFP: Saudi Foreign Minister Prince Saud al-Faisal warned on...

Closing a Peephole Into Iran

Los Angeles Times: In its scramble to marshal resources...

You might also likeRELATED
Recommended to you