New Delhi, Nov 24: In a bid to push the much delayed Indo-Iran gas pipeline project, Iran today offered to foot most of the 3 billion dollar cost of laying a gas pipeline from its southern fields to India via Pakistan and said it can supply the cheapest gas to the energy deficit nation. "Gas transported through a on-land pipeline passing through Pakistan will be much cheaper than alternate source such as importing gas by ships in form of liquefied natural gas (LNG)," Iranian Deputy Minister of Foreign Affairs M H Adeli said at the World Economic Forum (WEF) conference here.
While offering to foot 60 per cent of the cost of laying pipeline from Assaluyeh to Balouchistan in Pakistan and then to Delhi, Adeli side-stepped the deep sea option, which New Delhi has preferred fearing disruption in supplies if the pipeline passes through a hostile neighbour like Pakistan.
"Deep sea pipelines pose technical and financial difficulties as they have to be laid at water depth of 3500 metres. A shallow water line too is difficult as a rough sea bed is not suitable for laying a gas pipeline," he said.
Iran tied to reassure India about safe delivery of gas as its border saying the project would have fiscal cover intake or pay agreements, insurance cover, international contractual obligations and inter-governmental assurance.
Unlike the previous proposal where Pakistan was just a transit country, Iran's latest proposal promises that Islamabad will not disrupt supplies to India as it too would be taking gas for its domestic needs.
Refusing to quote the delivery price of the gas, he said the Indian consortium of Indian Oil Corp, GAIL and Oil and Natural Gas Corp and Iran's National Oil Company NIOC will be meeting next month to finalise the details.
Bureau Report