Iran Hopes for Endorsement of IPI Pipeline Contract in Near Future

Iranian oil minister expressed the hope that the final contract for the export of Iran’s gas to Pakistan and India through a multi-billion dollar pipeline – known as IPI pipeline – would be signed by the leaders of the three states in the near future. Speaking to FNA here on Monday, Seyed Kazem Vaziri Hamaneh said the three parties have reached agreements over the main items of the contract, including the price of gas exports, and said, “Owing to the fact that it is a long-term contract, it includes a large number of terms, each of which should be discussed one by one.”

“Price, term and volume of the contract, terms of price revision, quality of the supplied gas, etc. are among the main pillars of the contract,” he said, adding that the three sides have already agreed on a majority of the said items and are now continuing negotiations to finalize the remaining issues.

“We hope that following the agreement (between Iran, Pakistan and India), talks would continue between India and Pakistan over the gas transfer prices,” the minister said.

He said Iran’s gas would not be supplied to India until Islamabad and New Delhi reach an agreement over the price for transferring gas via Pakistan’s borders, adding that even if the two sides fail in attaining an agreement in the aforementioned regard, Iran would start exporting gas to Pakistan.

The minister also underlined that the construction of the IPI gas pipeline would establish and secure sustainable peace and stability in the region, between India and Pakistan in particular.

Iran, India and Pakistan narrowed their differences over the $7 billion natural gas pipeline in talks in Tehran last June.

The pipeline aims to feed the growing energy needs of the subcontinent but had earlier made slow progress due to political tensions between India and Pakistan, as well as price differences between the supplier Iran and consumers India and Pakistan.

Officials from the three countries held talks in the Iranian capital last June, where they could finally reach a groundbreaking agreement over the pricing formula and other issues of concern.

Iran sits atop the world’s second largest gas reserves after Russia.