Thursday, June 07, 2007
India, Pakistan devise strategy on IPI to avoid US sanctions
NEW DELHI: India and Pakistan have reportedly agreed to a tactical strategy of accessing Iranian gas without inviting sanctions from the United States. Both countries are now trying to wriggle out of the consortium that was to be formed for laying the tri-nation pipeline. The perspective gaining momentum in all three countries is that each country should lay the pipeline in their own territories, with the gas to be bought at their borders.
Sources here said this would mean that neither India nor Pakistan would âtechnicallyâ invest in Iran, which could mean the imposition of sanctions by the US. The US has adopted a threatening posture, repeatedly asking both countries to abandon their plans of buying gas from Iran. The approach, originally suggested by India over a year ago, would mean that Iran would construct its own pipeline up to the Pakistan border and India and Pakistan would lay their own pipelines.
The strategy would also help India in buying gas at its border with Pakistan in the Barmer district of Rajasthan while leaving the remaining negotiations to Iran and Pakistan. This poses an escape route to cool down the US at the earlier hawkish posture of Delhi that maintained that the US could not dictate terms to India on its gas purchases, essential for energy security.
Sources in the Petroleum Ministry here said this strategy would also provide more flexibility to the countries to decide on the nature of the pipeline, route feasibility and construction modalities that suit them instead of having to engage in tri-nation deliberations and negotiations on such matters.
In a recently concluded meeting in Tehran, the gas sales and purchase agreement clauses were discussed. A bilateral meeting between the Indian and Pakistani petroleum and gas ministers is expected soon to decide on the issue of transit and other related matters.
Pricing is still a major issue. Tehran wants to sell gas to India and Pakistan at $4.93 per million British thermal unit. Indian officials say this renders the gas economically unviable.
UK-based energy expert Roger Howard, author of Iran Oil, maintains that India and Pakistan cannot easily dismiss the threat of political and economic retaliation by the US. Citing the fate of Japanese interests in the South Azadegan oilfield, he said that despite winning the upstream contract in 2004, the Japanese consortium had to eventually back out of the deal under immense pressure from the US.
http://www.dailytimes.com.pk/default.asp?page=2007\06\07\story_7-6-2007_pg7_37
India, Pakistan devise strategy on IPI to avoid US sanctions
NEW DELHI: India and Pakistan have reportedly agreed to a tactical strategy of accessing Iranian gas without inviting sanctions from the United States. Both countries are now trying to wriggle out of the consortium that was to be formed for laying the tri-nation pipeline. The perspective gaining momentum in all three countries is that each country should lay the pipeline in their own territories, with the gas to be bought at their borders.
Sources here said this would mean that neither India nor Pakistan would âtechnicallyâ invest in Iran, which could mean the imposition of sanctions by the US. The US has adopted a threatening posture, repeatedly asking both countries to abandon their plans of buying gas from Iran. The approach, originally suggested by India over a year ago, would mean that Iran would construct its own pipeline up to the Pakistan border and India and Pakistan would lay their own pipelines.
The strategy would also help India in buying gas at its border with Pakistan in the Barmer district of Rajasthan while leaving the remaining negotiations to Iran and Pakistan. This poses an escape route to cool down the US at the earlier hawkish posture of Delhi that maintained that the US could not dictate terms to India on its gas purchases, essential for energy security.
Sources in the Petroleum Ministry here said this strategy would also provide more flexibility to the countries to decide on the nature of the pipeline, route feasibility and construction modalities that suit them instead of having to engage in tri-nation deliberations and negotiations on such matters.
In a recently concluded meeting in Tehran, the gas sales and purchase agreement clauses were discussed. A bilateral meeting between the Indian and Pakistani petroleum and gas ministers is expected soon to decide on the issue of transit and other related matters.
Pricing is still a major issue. Tehran wants to sell gas to India and Pakistan at $4.93 per million British thermal unit. Indian officials say this renders the gas economically unviable.
UK-based energy expert Roger Howard, author of Iran Oil, maintains that India and Pakistan cannot easily dismiss the threat of political and economic retaliation by the US. Citing the fate of Japanese interests in the South Azadegan oilfield, he said that despite winning the upstream contract in 2004, the Japanese consortium had to eventually back out of the deal under immense pressure from the US.
http://www.dailytimes.com.pk/default.asp?page=2007\06\07\story_7-6-2007_pg7_37
