| Iran, India, and Pakistan recently agreed to delegate | | | | whether the decision of the consultants will bind the |
| experts who would assume the task of resolving the | | | | three countries together. It is possible that one of |
| price issue that has been affecting the global trade | | | | them may still step out of the deal. |
| deal on gas planned by the three countries. According | | | | M. S. Srinivasan, India's Petroleum Secretary, said that |
| to resources, the huge pipeline project would | | | | there was still a disagreement between the two |
| transport natural gas from Iran to India with a | | | | sides as regards gas prices. He added that all the |
| distance of more than 2,500 km. If negotiations | | | | three countries needed to be flexible in order to push |
| would go well, the project could start in 2007. | | | | through with the global trade deal on gas. Mr. |
| Although the global trade deal was aimed for the | | | | Srinivasan though said that all the three sides |
| benefit of the three parties, both Pakistan and India | | | | remained bullish. While Iran said that it could trade its |
| could not still agree with Iran as regards the price of | | | | gas supplies elsewhere, both India and Pakistan |
| gas supplies. The three nations, then, agreed to | | | | responded by saying that they could also seek for |
| delegate independent energy experts in order to | | | | other foreign suppliers. |
| study the situation and come up with a plausible | | | | If the global trade deal on gas materialized, India |
| pricing solution. | | | | would be able to purchase up to 60 million cubic |
| Under the global trade deal, Iran wanted the gas | | | | meters per day while Pakistan could buy as much as |
| prices to depend on the changes in the international | | | | 30 million. The energy demand of both India and |
| energy markets. However, both India and Pakistan | | | | Pakistan are expected to increase by 50% in the |
| wanted the gas prices to be fixed. The huge project | | | | succeeding years. The pipeline project would also be |
| is reported to cost around $7 billion. | | | | very advantageous for Pakistan since the nation |
| The global trade deal was first proposed ten years | | | | could gain millions of dollars from transit fees. It must |
| ago. But negotiations have stalled due to | | | | be noted that last May, negotiations among the three |
| disagreements in terms of pricing. That was why the | | | | countries stalled due to the disagreement on gas. But |
| three countries decided to appoint special officials in | | | | if the issue would be resolved, the construction could |
| order to settle the issue. The energy experts, who | | | | begin next year while the operations could start in |
| have not yet been selected until now, have the duty | | | | 2011. Previously, the United States had rejected the |
| to come up with an effective solution during the next | | | | proposed global trade deal due to the strategic and |
| 4 to 5 weeks. | | | | financial benefits it would give Iran. However during |
| The three parties would then resume their | | | | his visit to Pakistan last March, President George W. |
| discussions on the global trade deal, basing it on the | | | | Bush showed signs that the US had already dropped |
| new pricing formula. What is not clear though is | | | | its opposition to the project. |