India, Pak agree to complete IPI gas pipeline by 2012

Islamabad, Apr 25 : Pakistan and India on Friday agreed in principle on matters relating to Iran-Pakistan-India (IPI) pipeline project, including formation of structure committee, transit fee and tariff.

Pakistani Federal Minister for Oil and Gas, Khawaja Asif and his Indian counterpart Murli Deora presided over the bilateral discussions on the project here today.

It was decided to work out a formula for transit fee and tariff in accordance with international practices. The gas rate, in this regard, will be determined soon in another meeting, The News reported.

Pakistan will contribute three billion dollars for the project to be completed at a total cost of 7.5 billion dollars.

The IPI gas pipeline coming from Iran will pass through Gwadar and Nawabshah to India.

A total of 2.60 billion cubic feet gas will be supplied per day from this pipeline. Pakistan and India will get half of the total supply from the project that will be completed by 2012.

ANI