Ignore Pak, ask Iran for gas via sea: MEA

[Neo]

Ignore Pak, ask Iran for gas via sea: MEA

Amitav Ranjan
National Security Council
Sunday , Mar 21, 2010

In light of the dip in ties with Islamabad, the Ministry of External Affairs has advised the government to walk out of the proposed Iran-Pakistan-India (IPI) gas pipeline but continue talks with Tehran for a deep-sea pipeline that avoids Pakistan.

“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.

Endorsing MEA’s position, officials from the National Security Council Secretariat cautioned that the IPI pipeline would be a potential target of India-centric terror groups in Pakistan.

Last Tuesday, Pakistan signed two pacts with Iran that deems India’s participation in the project at a later date. The pipeline through Pakistan is envisaged to carry 60 million standard cubic metres of gas per day of which half would be for India.

The inter-ministerial group of bureaucrats, who met on March 9, decided that India continue its talks with Iran on upstream gas exploration/development and assured gas supply.

While the meeting was told that “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”, “there was unanimity that in view of the energy security of the country, India does need to continue to engage with Iran”.

Besides providing “first-mover advantage” on exploration and LNG projects there, the panel agreed that India’s engagement with Iran, an important oil and gas player, would open the option of laying another onland pipeline up to Iran-Pakistan border from where a sub-sea pipe would be laid to India.

Delhi will approach Tehran for meetings of the Indo-Iran Joint Working Group on Oil & Gas and the Joint Working Group on IPI Project in May, said a GAIL India official.

The pipelines combination will be shorter than the proposed IPI pipeline, result in lower pipeline cost and transport tariff, he said.