Iran awards feasibility study for pipeline through Pakistan to India

The Iranian government selected Australian consultant BHP Kinhill and Snamprogetti SPA of Italy to carry out a feasibility study for a proposed $6 billion gas pipeline from Iran to India. The 2,670-km line, which would begin at a gas field in southern Iran, would have to pass through Pakistan to reach India.

By an OGJ Online Correspondent

MUMBAI, Dec. 13 -- The Iranian government selected Australian consultant BHP Kinhill and Snamprogetti SPA of Italy to carry out a feasibility study for a proposed $6 billion gas pipeline from Iran to India.

The 2,670-km line, which would begin at a National Iranian Oil Co. gas field in southern Iran, would have to pass through Pakistan to reach India. The proposed 58-in. line would transport 66 million cu m/year.

The report should be ready by March 2002.

"Once the feasibility study has been submitted, the two governments will hold negotiations and discussions on how the project will be implemented," said S.M.H. Adeli, Iran's deputy foreign minister, after a meeting with Indian Petroleum Minister Ram Naik.

It was proposed that 70% of the line's capacity be contracted to India and the rest to Pakistan. In a bid to reduce security threats, it was suggested that a consortium of multinationals be formed to develop the project. Then if the two countries squabble, as is not uncommon, officials hope the multinationals could use their influence to reduce any impact on the pipeline.

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