May 13, 2003	Tuesday	Rabi-ul-Awwal 10, 1424

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NEW DELHI, May 12: Senior Indian and Iranian oficials are discussing plans for a gas pipeline between the two countries that could pass through Pakistan, a possibility brigthened by hush hush talks between Teheran and Washington in Geneva recently, reports and diplomats said on Monday.

They said Indian Petroleum Minister Ram Naik arrived in Teheran on Sunday to discuss with his Iranian counterpart Bijan Namdar Zanganeh energy-related issues, including the $3.5 billion project.

Diplomats said rare and grudgingly acknowledged talks between Iranian and American officials in Geneva, though focussed on developments in Iraq and Afghanistan, could eventually impact on the fate of the gas pipeline. Iran has appreciated the American assault on Maoist Iranian rebels who had been operating from inside Iraq. But an official Iranian spokesman was quoted as denying that restoration of diplomatic ties was imminent.

During his two-day visit, Mr Naik will discuss with Mr Zanganeh the comparions between an overland gas pipeline running through Pakistan, a deep sea pipeline and India’s reliance on import of gas through tankers from Qatar.

India, Asia’s third biggest energy consumer, will also look at taking some of Iranian oil fields on a nomination basis and opportunities for Indian firms in upstream sector, reports said.

Mr Naik is also holding talks on the state-run Oil and Natural Gas Corporation Videsh Limited, the ONGC’s foreign investment wing, participating in Iran’s southern Fars oil fields.

Iranian Deputy Oil Minister Hadi Nejad Hussainian had begun discussions on this project during his visit to New Delhi last week. India imports nearly 70 per cent of its needs in energy including 5 million tonnes of crude oil from Iran.

Iranian President Mohammed Khatami during his visit to India last January signed a memorandum of understanding with New Delhi on possible investment in Iranian oil sector.