Tehran has presented a revised gas formula for Iran-Pakistan-India (IPI) pipeline project, demanding review of the rates after every three years. Iranian authorities presented the revised gas formula for IPI during its working group''s meeting held in New Delhi from June 27-29.
A senior official of the Petroleum ministry confirmed to Business Recorder on Thursday that Iran has placed a new gas prices formula for IPI pipeline and Pakistan and India will respond to its demand at an appropriate time. He said "It''s Iranian demand for review of gas prices for IPI after three years and Pakistan and India will assess its implications and may respond at working group''s next meeting.
The gas rates have been one of many serious issues relating to IPI and after series of meetings all parties to the project reached to an understanding on the subject.
Iran''s demand for three yearly review contradicted the announcement made at the end of Tehran meeting held sometimes back, rather it added to differences among the parties to the project.
Iran may not get desired result from the revised gas formula as India and Pakistan are not willing to accept its demand at this point in time. Islamabad and New Delhi have already reached to an understanding that they will not accept Iran''s demand of the new gas prices and want that Tehran should honour its previous commitment.
Sources said Pakistani petroleum secretary, Ahmed Waqar, and his Indian counterpart had held detailed telephonic consultations even before the start of working group''s meeting in New Delhi. They agreed that Islamabad and New Delhi will join hands against Iran for any gas pricing formula.
The parties to the projects have also differences on other key issues such as grantees, security and safety mechanism to ensure continuous supply of gas to the project and transit fee that Pakistan is demanding from India for transporting gas from its territory.
The senior official clearly indicated that some serious issues of IPI were yet to be resolved but refrained himself from divulging details of thorny issues. These thorny issues are keeping the parties from a breakthrough to bring IPI on ground.
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