Deora to visit Pakistan in May

New Delhi, Apr 16 (UNI) Petroleum Minister Murli Deora will be on an official visit to Pakistan early next month to sort out differences over transit fee for the seven-billion-dollar Iran-Pakistan-India (IPI) gas pipeline.

The two sides would discuss the issue at the ministerial-level meeting early next month, an officail said today.

Pakistan wants a transit fee of 0.49 dollars per mBtu (10 per cent of the gas price) and a transportation tariff of 1.57 dollars per mBtu, making the delivered price of gas at Indo-Pak border seven dollars per mBtu.

Earlier this week, Pakistan approved an agreement to share gas supplies from Iran with India.

Under the agreement, Iran will provide 2.1 billion cubic feet (bcf) of gas per day in the first phase with equal share for Pakistan and India.

In the second phase, Iran will increase the supply to 3.2 bcf.

Out of the total 5.3 bcf to be received from Iran, Pakistan would get 2.1 bcf and India 3.2 bcf per day.

Mr Deora had discussed the transit fee issue at length during his meeting with Pakistan Prime Minister Shaukat Aziz at SAARC summit early this month during which he reportedly conveyed India's reservations over ''high charges''.

Iran wants to sell natural gas to India and Pakistan at 4.93 dollars per million British thermal unit (at 60 dollars per barrel crude oil price).

The construction work on the project is expected to start next year and will be completed in four years.

Tying up its relations with the Central Asia, India and the Central Asian nations of Uzbekistan and Azerbaijan have agreed to cooperate in several areas including energy and exploration of oil and gas.

Uzbekistan has agreed to open technical-level talks with the Gas Authority of India Ltd (GAIL) for enabling the Indian company to start exploration in natural gas in the gas-rich Central Asian country yesterday.

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