“India has to ensure that liability to pay for the gas supplied by Iran is directly linked with its delivery at the India-Pakistan border,” an official source said. The negotiators have the Cabinet’s mandate to seek delivery of gas at the India-Pakistan border.
In February 2005, the Cabinet authorised the ministry of petroleum and natural gas (MoPNG) to engage in bilateral and multilateral negotiations with Iran, Pakistan, Bangladesh and other countries for laying trans-national natural gas pipelines.
Iran has reportedly suggested a trilateral mechanism for ensuring gas delivery at the India-Pakistan border. But it may still not supply gas at the Pakistan-India border. “It has suggested contractual provisions (in the gas sales purchase agreement) among the three countries to ensure safe delivery of gas to India,” the source said.
According to sources close to the development, India may construct and manage the IPI pipeline on the Pakistani side through a tripartite joint venture, but neither India nor Pakistan will be able to construct the pipeline in Iranian territory due to US sanctions.
New Delhi has adopted a cautious approach towards the 2135-km pipeline project on apprehensions of supply cuts arising out of geo-political factors. India, however, clarified that the nuclear deal will not impact the proposed pipeline.
Author: Jo Amey
