Pakistan and Iran in gas sale tie-up, India to follow

Tehran, Feb 7 (UNI) External Affairs Minister Pranab Mukherjee today said Iran and Pakistan have agreed on a pricing formula for the fuel supply through the tri-nation, seven billion dollar gas conduit which will also sell its supplies to India.

''A Pakistan delegation now would meet their Indian counterparts in New Delhi shortly and once the formalities are finalised a decision would be taken soon with India on gas pricing.'' Mr Mukherjee said at a press conference during his visit to Tehran jointly organised with his Iranian counterpart Manoucher Mottaki.

Mr Mukherjee's statement comes a day after Petroleum and Natural gas Minister Murli Deora said in New Delhi that India is likely to sign a 145 billion dollar deal by June, to import natural gas from Iran through the three nation pipeline after Tehran lowered sale price by 30 per cent.

''On preliminary analysis, the new price offered by Iran looks alright for us. Subject to satisfactory conclusion of the Gas Sales and Purchase Agreement, we may sign a deal with Iran by June,'' Mr Deora said.

Tehran in an attempt to salvage the project that would give the US sanction hit country about 9.5 billion dollars in revenue annually, has changed the price formula from 10 per cent of the ruling Brent crude oil price plus 1.2-dollars per million British Thermal units (mBtu) fixed cost to 6.3 per cent of the Japanese crude cocktail (JCC) plus 1.15 dollars per mbtu.

Mr Mukherjee said India will also pursue the deal to supply LNG to India. ''We discussed the LNG issue and I have asked them to expedite the contract''.

A three nation delegate level meeting is being fixed for the LNG supply. Terming it a symbol of close relationship, Mr Mottaki said this ''peace-pipeline project'' will be finalised soon.

Mr Mukherjee also said that he extended cooperation to Iran for infrastructure projects in Afghanistan.

''India would also like to see a stable, peaceful, prosperous united and democartic Iraq,'' the Minister said.

UNI