India, Pakistan agree on gas transport fee, fail on transit fee

New Delhi, June 28 (UNI) India and Pakistan today agreed on the transportation fee for the gas to be supplied by Iran through the 7.4 billion dollar tri-nation pipeline, but failed to reach a consensus on the transit fee.

''We have agreed on principles under which the transportation tariff will be computed. But, the two countries are yet to reach an agreement on a transit fee for evacuating the gas through the 1,050-km stretch in Pakistan,'' Energy Advisor to Pakistan Prime Minister Mukhtar Ahmad told reporters here at a two-day official level talks among Iran, Pakistan and India.

The transit fee will not hinder the Iran gas pipeline pacts, he added.

It would be decided when oil ministers of India and Pakistan meet just before the three-nation ministerial conference in second half of July.

Iran also sought a revision in the pricing formula every three years based on international fuel prices and changes in the agreement on the pricing of natural gas for supply to India and Pakistan.

The proposed pipeline will initially carry 60 million cubic meters of gas, equally divided between India and Pakistan with the delivery point at the Iran-Pakistan border.

Earlier, the two neighbours have agreed to the price formula proposed by Iran which is placed at 4.93 dollars per million British thermal unit (MBTU). India and Pakistan have sought the price to remain unchanged for 25 years, the time span for the supply contract.

Today's meeting between India and Pakistan were held between Petroleum Secretary M S Srinivasan and his counterpart Ahmad Waqar in the pre-lunch session.

Iranian officials joined in the post-lunch session to discuss delivery point, delivery schedules, framework agreement, legal and financial provisions in the contract and safeguards.

UNI