IPI gas pipeline
Pak, Iran agree to remove price hitch

ISLAMABAD—President General Pervez Musharraf on Saturday talked to Iranian President Mahmud Ahmadinejad on telephone and discussed measures to expedite the US $ 7 billion Iran-Pakistan-India gas pipeline project. The two leaders agreed to remove impediments in the 2600 km gas pipeline project that aims at supplying natural gas from Iran to Pakistan and then onwards to India.
Both leaders also discussed the tariff issue and called for an early resolution of the gas price mechanism and commencement of the project. President Musharraf said the project will be a win-win for the people of the two countries and will further strengthen their strong brotherly ties. President General Pervez Musharraf talked to his Iranian counterpart President Mehmood Ahmadinijad by telephone and exchanged views on bilateral relations, regional situation and key regional and international issues. Both the leaders agreed on taking forward Pakistan, Iran and India gas pipeline project saying the project will not only benefit the three countries but will also be beneficial for the whole region. They also discussed the Iranian nuclear program.
President Musharraf reiterated Pakistan resolve that a peaceful solution to Iranian nuclear issue be evolved and use of force be avoided other wise it will engulf the entire region. They also agreed on further expanding bilateral economic and trade ties between Pakistan and Iran. President Musharraf described the meeting between the presidents of Iran and Iraq vital saying Pakistan appreciates the efforts for establishment of peace in Iraq. Iranian president lauded policies being pursued by president Musharraf related to war on terror and steps being taken by him for peace and stability in the region.
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 extrapolite 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.—Agencies