IPI pipeline documents to be ready by June

Dubai, Feb 25 (UNI) National Iranian Gas Export Company (NIGEC) has indicated that the issues of contract, price and necessary documents related to IGI pipeline would be completed by June and the gas will be transferred to the Indian sub-continent by 2010.

An Iranian official was quoted by Tehran Times as saying that the gas pipeline would have enough protection.

Iran, India and Pakistan last month agreed over a price formula for Iran's gas to be delivered via a proposed seven billion dollar pipeline.

''We have finally reached an agreement over the price formula,'' Deputy Petroleum Minister and head of Iran's negotiating team Hojatollah Ghanimifard said.

In August last, Iran offered a price linked to Brent crude oil that was equivalent to about eight dollar per million British thermal units (mmBtu) while New Delhi's offer was 4.25 dollar per mmBtu.

The UK-based consultant Gaffney Cline&Associates was appointed by the three countries in September after they failed to agree on a rate acceptable to all.

But India and Pakistan rejected the consultant's suggested price in November.

''The three delegations will now take the results to their governments for further discussions,'' Mr Ghanimifard said adding the governments had one month time to announce their final decision on the agreement.

He did not elaborate on the details of the formula or the price range that was agreed upon, but expressed hope that the remaining measures regarding the natural gas pipe line would be taken by the end of June, if all of the problems were solved.

UNI