Iran seeks revision in pricing formula every three years

New Delhi, June 28 (UNI) Iran today sought a revision in the pricing formula every three years based on international fuel prices at the two-day official level talks between Iran, Pakistan and India here on the supply of gas through the 7.4 billion dollar three nation pipeline.

Iran has also sought changes in the agreement on the pricing of natural gas for supply to India and Pakistan. At the talks here, India and Pakistan have reached an agreement on transportation charges.

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.

India and Pakistan have also reached an agreement on the principle of computing the transportation charges payable to Islamabad for evacuating the gas through the 1,050-km stretch in Pakistan.

The issue of transit fee, payable to Pakistan for allowing the pipeline passage is yet to be thrashed out, sources said.

The transit fee issue would be decided when oil ministers of India and Pakistan meet just before the tri-nation ministerial conference in second half of July.

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