India has quit Iran gas pipeline deal: Report

[khalsa1699]

India has quit Iran gas pipeline deal: Report

TEHRAN: India has exited from a gas pipeline deal it earlier planned with Iran and Pakistan, Mehr news agency reported citing a Pakistani diplomat. "India definitely quitted the IPI (India-Pakistan-Iran) gas pipeline deal," the report said citing Pakistani ambassador to Iran, Muhammad Bux Abbasi, as saying here on Sunday.

Abbasi added that Pakistan plans to increase its crude oil import from Iran. Iranian officials, however, said India has not yet officially declared its intention.

In May this year, Tehran and Islamabad signed a $7.5-billion deal to supply gas from Iran to Pakistan.

As per the deal, Iran would initially supply 30 million cubic meters of gas per day to Pakistan which would be later increased to 60 million cubic meters per day.

Iran, Pakistan and India had conceptualised the project in the 1990s to help boost peace and security in the region, besides mitigating the power crisis.

India stopped negotiations on the project due to tension with Pakistan, although Iran repeatedly encouraged New Delhi to rejoin the process, according to the report.

The pipeline would run 2,775 km when linked with the three countries.

The project would have greatly benefited India, which do not have sufficient natural gas to meet its rapidly increasing domestic demand.

Pakistan has been facing electricity shortfall of more than 3,000 megawatts and plans to generate 4,600 megawatts from Iranian gas. Islamabad has been under pressure from Washington to abandon the deal.

http://timesofindia.indiatimes.com/news/business/international-business/India-has-quit-Iran-gas-pipeline-deal-Report/articleshow/4980241.cms

[DarthJesus]

Why did they pull out of the deal?

[avedis]

Why did they pull out of the deal?

Because of the Juice silly.

[Universal_Soldier]

India needs that pipeline now or soon. My guess is this is not last we 'll hear about this pipe-line.

[Estopped]

They'll come back to it eventually. India needs Iran more than Iran needs India.

[VAMAN]

The problem is India's foreign diplomacy is in shambles. The foreign ministry is run by an incompetent minister.

[Holycrusader]

Good news for ... China.

[hulaku]

The main reason why India pulled out of the deal is the fact that the pipeline is going to run through Pakistan which is not a very good idea for Indian strategic interests. Another reason is probably pressure from the US.

There is also talk of India setting up a gas fed plant in Iran for 5.1 billion dollars and then transfer the electricity to India through undersea cables.

Another fact is that India has just signed a deal worth 20.5 billion dollars for the supply of gas with Autralia.


India, Australia sign $20.5 bn gas deal
19 Aug 2009, 1607 hrs IST, PTI
NEW DELHI: Petronet LNG has signed a $20.5-billion gas purchasing agreement with Australia's ExxonMobil, the first long-term gas contract
between the two countries.

According to the agreement, signed Aug 10 in Perth, ExxonMobil will sell around 1.5 million tonnes of liquefied natural gas (LNG) annually from the Gorgon project in western Australia to Petoronet for 20 years.

Petronet is a privately registered company promoted by state-run oil firms.

The greater Gorgon fields have more than 40 trillion cubic feet of natural gas reserves and it is Australia's largest known gas resource, according to a statement from the Australian high commission here.

The project is being developed by the Gorgon Joint Venture, which consists of Chevron (50 per cent), ExxonMobil (25 per cent) and Shell (25 per cent).

http://economictimes.indiatimes.com/News/News-By-Industry/Energy/Oil-Gas/India-Australia-sign-205-bn-gas-deal/articleshow/4910946.cms