Talks continue for Pakistan-Iran pipeline megaproject

Jan. 10, 2005
Talks are continuing between Pakistan and Iran about the proposed Pak-Iran gas pipeline megaproject.

Talks are continuing between Pakistan and Iran about the proposed Pak-Iran gas pipeline megaproject. Officials of the countries hope India will join the discussion.

Plans for the Pak-Iran pipeline project were conceived 6 years ago. Early talks between Pakistan and Iran included India's participation, which was considered important to make the project commercially viable.

Iran helped convince India of the project's feasibility and importance in meeting India's rising gas requirements.

During minister-level talks held Jan. 5, it was decided that Pakistan and Iran would hold project discussions through June 30. Petroleum Minister Amanullah Jadoon represented Pakistan during the talks, which focused primarily on two issues—the schedule for bringing the pipeline project online and the inclusion of India as a project participant.

Jadoon told Iranian representatives that Pakistan was studying technical aspects of the project—with and without India's participation—such as feasibility, route, and sources of funding.

According to an official, Pakistan told the Iranian delegation that Islamabad would welcome India's participation in the project because it would add to its commercial value but could not wait indefinitely for a response from India.

A Pakistani official told the media that the Iranian delegation agreed with Pakistan's schedule for the project, which would be followed by further technical discussions between the two countries.

The official said that Pakistan was comfortable with raising funds for the project from indigenous resources and that—since the gas pipeline could help expedite economic growth of the member countries—international donors such as the Asian Development Bank and the World Bank were ready to finance the project.

Iran-Pakistan-India line

Meanwhile, Pakistani Prime Minister Shaukat Aziz said the Iran-Pakistan-India gas pipeline project could serve as a durable confidence-building measure, creating strong economic links and business partnerships among the three countries.

The prime minister said to Iranian Oil Minister Bijan Zanganeh, who called on him to discuss options for supply of gas from Iran, "We are working to provide India a secure energy corridor and enabling it to get gas from overseas."

The prime minister then said that during his December visit to New Delhi he discussed the gas pipeline project with Indian leaders.

"The gas pipeline is a win-win proposition for Iran, India, and Pakistan," he said.

Pakistan, he said, was interested in importing gas to meet its growing energy needs and was assessing its options.