IPI gas pipeline talks leap forward

NEW DELHI—First Tri-partite meeting of three Joint Working Groups on Iran-Pakistan-India Gas Pipeline is expected to be held in Tehran in early February next year to address issues relating to the project. Pakistan’s Minister for Petroleum and Natural Resources is likely to visit New Delhi in February, 2006 to review the progress in respect of the project jointly with his Indian counterpart, said a Joint Press Statement issued here today at a news conference held on the conclusion of two-day Third Round of talks on Joint Working Group meeting.
Pakistan’s side was led by Secretary Petroleum Ahamd Waqar, while Indian delegation was headed by Petroleum Secretary S C Tripathi at the parleys. Pakistan and India agreed that the matter of transit fees regarding Iran-Pakistan-India Gas pipeline project would be approached on the basis of “international best practice.” said the Statement adding, it was noted that there were various options available to determine transit fee. In response to a question Pakistan’s Secretary Petroleum said that next meeting of the Joint Working group would be held in early March next year at Islamabad on a mutually convenient date, adding the Project Structure and Framework Agreement would be finalized by April, 2006. Describing the talks very productive, he said substantial and meaningful progress was made at the talks on a range of issues regarding this gas pipeline project.
The parleys were held in extremely cordial atmosphere and there was keen desire to move ahead on this project, he said adding, both sides had the will and commitment to finalize the issues so that this project could take a concrete shape hopefully by April or May next year. “Our target is that the project should be completed by 2010. Consequently we are moving keeping that date in view. We envisage that the construction of the project should start by the middle of 2007”, Waqar told the media persons. He further said, “We have achieved progress and continue to meet assuring that all the outstanding issues, which can impinge upon this project, are finalized”. This project is very important and essential for both the countries in view of energy security and economic growth, he said billing the project as Pro-Poor Gas Pipeline Project (PPGP). Poor people of both sides would benefit the most from affordable and sustainable energy through this project, he added. Major points discussed during the talks were Project Structure, Framework Agreement, Pipeline route, transit fee principles, transportation tariff sy stem configuration, gas quantities and built up period, he added.
According to the Joint Press Statement, the two sides agreed to set up a joint technical Sub-Group, which would meet at least once in a month alternately in each country to discuss various technical aspects relating to the pipeline project such as technical specification, the quantum of gas, pipeline route, transportation tariff and system configuration. There was preliminary exchange of views on the broad principles determining this fees which would be finalized after other relevant aspects of the project, it maintained. The Joint Press Statement said that the discussions were conducted in a spirit of mutual understanding and cooperation, with the desire on both sides to make progress on the pipeline project.—APP