India remains on the sidelines for now, despite having taken part for years in negotiations, because it does not agree on price of Pakistani transit tax. The project poses great financial and security problems particularly on Pakistani soil.

Teheran (AsiaNews/Agencies) –After 13 years of negotiations, Iran and Pakistan have decided to go ahead with a preliminary agreement for a gas pipeline from the Persian Gulf.  The final agreement is expected within 15 days.

When completed the 2100-kilometre pipeline costing 7.5 billion dollars will carry 90 million cubic metres of gas per day from Iran’s South Pars, out of which 30 million cubic metres would be for internal consumption in Iran. Tehran plans to begin export of gas to Pakistan by end of 2013. Around 1,100 kilometres of the pipeline would be in Iran, while the remaining 1,000 kilometres would cover Pakistan. Nearly 600 km of the pipeline will also run in India.

The signing of the deal is seen as an attempt to pressure India, who has not taken part in negotiations since mid 2007.  New Delhi does not agree with the transit price being demanded from Islamabad: 60 million dollars per anum has been offered, but Pakistan wants three times as much.  India was also placed under mounting pressure by the government of former US President George W. Bush not to provide Tehran with such a high income, given that the nation is still under UN sanctions because of its nuclear program.  Newly elected President Barack Obama has so far taken no official position regarding the gas pipe line.

Experts doubt that Pakistan and Iran alone have the financial resources to be able to carry out the pipeline alone, and Iran’s part in the project is not supported by international financial institutions.  This is why they believe that if India does not sign on to the project, its place maybe taken by third state such as China, which has long shown interest in the project.  Officials taking part in the signing ceremony commented “India or any other nation can take part later on”.

Another concern is the security of the pipeline, which is destined to pass along turbulent areas of Pakistan such as Baluchistan, where autonomists in their battle for independence have already attacked local gas pipe lines.

• pakistan
• india
• iran
• gas
• pipeline
• peace
• energy
• finance
• US
• china