Pak, India nix expert price of IPI gas

NEW DELHI—India and Pakistan have rejected the gas import price worked out by a consultant appointed by Iran as part of the over 7 billion dollar tri-nation pipeline project.
“The price worked out by the consultant, which was based on certain parameters given by Iran, was not acceptable to India and Pakistan. The consultant has been given revised parameters to work out the gas pricing,” Oil Minister Murli Deora said in a written reply to a question in Rajya Sabha.
Iran had appointed Gaffney Cline and Associates to work out a price formula for the gas Iran wants to sell to the two South Asian neighbours. While Deora did not elaborate, sources said the Iranian side had asked the consultant to work out the gas price with future LNG contracts as reference point.
New Delhi had, however, wanted the reference to be fixed at the LNG contracts entered into during the past few years and extra polite it to crude oil prices. “Since the basis of arriving at the formula was not acceptable, we did not go into the GCA’s suggestion,” an official said.
Tehran had at the last trilateral meeting in New Delhi on August 3-4 wanted a price equivalent to 10 per cent of ruling Brent crude oil price, plus a fixed cost of 1.2 dollars per million British thermal unit (mBtu). At 60 dollars per barrel, the average Brent price during recent times, this translated into a price of 7.2 dollars per mBtu at Iran-Pakistan border. Added to this would be the cost of transporting the gas through Pakistan.
New Delhi, however, was willing to pay no more than 4.25 dollars per mBtu for gas delivered through the 2,100-km line at its border, sources said.
Earlier, it was confirmed that the multi-billion Iran-Pakistan-India (IPI) gas pipeline is very much intact and discussions are underway to settle the issue of gas price mechanism, the Foreign Ministry said on Monday.
Progress on the issue is encouraging, spokesperson Ms. Tasneem Aslam told her weekly press briefing.
To a question regarding agreement with International Atomic Energy Agency (IAEA) for civil nuclear power plants, she said a standard agreement on safeguards with the agency has been signed by Pakistan for Chashma nuclear plant unit one, two, three and four which is a basic element and covers almost all civil nuclear reactors around the world.
She said there are about four hundred and twenty nuclear power reactors in the world and all of them are working under IAEA safeguards.
The spokesperson to a question regarding Foreign Secretary’s meeting with the members of Nuclear Supplier Group, said the Foreign Secretary is in Vienna to hold talks with European Union on bilateral agenda.
She said he also met Nuclear Supplier Group’s ambassadors and briefed them about Pakistan’s energy plans and our requirement. Pakistan is committed to that process and we are engaged with the group to achieve our goals.
Ms. Tasneem Aslam said Foreign Minister Khurshid Mahmood Kasuri held an informal meeting with his Indian counterpart Pranab Mukherjee on a lunch on Monday and discussed Pak-India ties, and overall peace process. It is understood that all the aspects of Pakistan -India dialogue has been discussed.
Answering a question regarding some statements from Kashmiri leaders siding India, she recalled the ideas of demilitarisation and self-governance floated by President Pervez Musharraf and said these have been welcomed by these leaders and they are discussing them.
We feel this went across the board as Kashmiris are debating the ideas, which is good, the spokesperson said.—Agencies