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India says no to onland gas pipeline

July 29, 2003 18:36 IST

India on Tuesday ruled out importing natural gas from Iran through an onland pipeline.   

"Keeping in view the present state of bilateral relationship with Pakistan, the government is not considering any proposal for on-land natural gas pipeline transiting through Pakistan," Minister of State for Petroleum & Naural Gas Sumitra Mahajan said in a written reply in Rajya Sabha.

Both Iran and Pakistan are keen on the 2,670-km long onland pipeline as it provided the former a cheap route to sell its vast gas reserves and the latter would have earned about $580 million transit fee from the $3.5 billion gas conduit.

New Delhi, on the other hand, has been favouring an underwater line to avoid disruption in supplies.

Iran has engaged Australian consultant BHP Kinhill to detail the onland gas pipeline passing through Pakistan. It has also appointed Italy's Snamprogetti for working on a feasibility study for the construction of an offshore gas pipeline from Assaluyen gas field in Southern Iran to India.

Mahajan said Indo-Iran Joint Committee had constituted a joint technical sub-committee to explore all the options to import natural gas from Iran.

"The Joint Committee had decided to undertake an offshore feasibility study for laying of pipeline from Iran to India outside the Exclusive Economic Zone of Pakistan. India's Gail and National Iranian Gas Export Co have been nominated as nodal agencies for the pipeline project by the respective governments," she added.

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