The government has decided to seek inputs from the Senate standing committee on Petroleum and Natural Resources on the billion-dollar Iran-Pakistan-India (IPI) gas pipeline deal. Sources said that Petroleum Ministry would brief the Senate body on Thursday to seek inputs before entering into IPI gas pipeline deal with Iran.
They said that after inputs from the Senate body, Pakistan delegation would leave for Iran to discuss gas pricing formula. Earlier, the meeting was scheduled for November 7, but was postponed.
Sources said that Iran wanted revision of a clause in the gas pricing mechanism of IPI gas pipeline deal despite the fact that Pakistan and Iran had finalised the draft of Gas Sales Purchase Agreement (GSPA) on IPI gas pipeline deal during the caretaker government.
They said that in the earlier draft of the GSPA, Iran had agreed to link gas prices in international market, but capped at $70 per barrel. But now Iran wants to remove the cap and to allow the gas price mechanism to fluctuate according to gas prices in the international market.
They said that Indian status in the proposed IPI gas pipeline deal would also come under discussion in the meeting of the Senate body. India has not still given a formal response on the gas transit fee issue. India wanted a fixed transit fee, whereas Pakistan wants the fee fluctuate in line with the revision in gas price.
India during the talks on gas transit fee in April here in Islamabad had agreed to provide gas transit fee of 30 cents per MMBTU but had not yet formally responded to Pakistan. Following the directions of Prime Minister, Balochistan representatives are also expected to attend the meeting of senate body. Prime Minister had directed the Petroleum Ministry to take the main stakeholder in gas pipeline deal on board.
They said that Balochistan had also demanded a share of the gas transit fee as the pipeline would pass through the province. Chief Minister Balochistan Aslam Raisani in a meeting held on August 18 in the Petroleum Ministry had demanded share in the gas transit fee.
Sources said that 900 km pipeline would be laid in Pakistan to transmit gas to Indian border that would come from Iran. They said that 787 km pipeline would be laid in the Balochistan and Balochistan had demanded linkage between the gas transit fee and the length of the gas pipeline that would go through Balochistan province. 113 km pipeline would go though Nawabshah Sindh to Indian border.
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