Despite sanctions, India wants IPI talks with Iran

Source: PressTV
http://www.presstv.ir/detail.aspx?id=121310§ionid=351020103


As India's petroleum ministry announced proposals to restart direct “bilateral' talks with Iran regarding the long-delayed Iran-Pakistan-India (IPI) natural gas pipeline project, the country's ministry of external affairs has called for a deep sea alternative pipeline from Iran.

India's Petroleum Secretary S. Sundareshan announced yesterday, "We have proposed dates for holding technical level talks in Tehran in May," regarding the IPI project which is envisaged to carry some 60 million cubic meters (2.12 billion cubic feet) of gas every day.

The IPI pipeline is expected to provide a route for the supply of natural gas from Iran to Pakistan and India. However, India's distrust of the security of supplies through the territory of its rival Pakistan led it to walk away from the talks in 2008, while Iran and Pakistan continued to discuss the project.

Now the Indians want to re-enter the project, subject to certain conditions, centered around pricing and delivery point, according to India's Business Standard.

“We want to address these issues before we sign up for the IPI pipeline deal," said S. Sundareshan, who also described the price quoted by Iran as “high and not affordable."

The paper reported that India wants Iran to be responsible for the safe transport of the natural gas through the 1,035-km (643-mile) pipeline in Pakistan. It also wants to pay for the fuel only when it is delivered at the India-Pakistan border.

Meanwhile Indian Express reported Saturday that the country's MEA has called for India to withdraw from the IPI project and instead discuss the establishment of a deep sea pipeline with Iran which would bypass Pakistan altogether.

“In view of the complicated relationship between India and Pakistan, the Ministry of External Affairs does not advise meeting between India and Pakistan for further discussions on the project... the deep-sea pipeline option may not involve Pakistan and, therefore, the same can be pursued," MEA officials said at a meeting last week to decide India's position on the IPI pipeline.

This view was met with approval from India's National Security Council Secretariat, which warned that the IPI pipeline would be a potential target for “India-centric terror groups in Pakistan."

Earlier, the Indian inter-ministerial group of bureaucrats meeting on March 9 had decided to meet Iranian officials to discuss upstream gas exploration and development.

According to Indian Express, the meeting was told that while “Iran is internationally isolated due to continuing sanctions, any wholehearted engagement in Iran may emerge as an area of friction between India and the West," yet "there was unanimity that in view of the energy security of the country, India does need to continue to engage with Iran."

It is thought the planned May talks between Indian and Iranian officials will cover both alternatives.

According to Oil and Gas Journal, with some 29.6 trillion cubic meters (1,045 trillion cubic feet) of proved reserves, Iran has the second largest stocks of natural gas in the world, and India's rapidly growing economy is in need of a secure and long-term source of gas.