NEW DELHI, Feb 14: India said on Monday that it wants the proposed gas pipeline from Iran via Pakistan to be extended to China, a move that could lend political security and urgency to the $4.5 billion project.
"We should look beyond a national gas grid. Asian natural gas industry players should come together to form an Asian gas grid," Indian Petroleum Minister Mani Shankar Aiyar said while inaugurating the third Asian gas buyers' summit here this morning.
He said demand in Asian region was rising as India and China were turning major buyers of gas. "It is possible that Iranian gas would be made available to China by extending the proposed Iran-Pakistan-India pipeline to South China," he said.
Mr Aiyar said the Asian gas grid would enable the countries in the region to maximize the gains, end the "wretched western dominance" and ensure energy security and economic growth in Asia.
Iranian representatives present at the deliberations lauded the minister's suggestion. The two countries also began preliminary discussions on Monday for a proposed pact for the pipeline they are expected to sign in Teheran in June.
Officials from the National Iranian Gas Exports Company met their Indian counterparts in GAIL, IOC and ONGC Videsh Limited. The officials will workout details and propose to discuss further on the Iranian Gas pipeline feasibility report, which it had done a few years ago.
Mr Aiyar defended the proposal to establish an Asian gas grid as the region had more than 55 per cent gas reserves. He also underlined the need for the country to look beyond only the national gas grid and called upon important Asian natural gas industry players to jointly make initiatives to harness the gas reserves for the benefit of the entire Asian region and form an Asian gas grid.
"The 21st century should be the century of gas and demand for it was rising with India and China playing a major role as the buyers of gas for their energy needs," Mr Aiyar said. "We welcome Indian companies in the development of one of the phases of South Pars gas field," National Iranian Gas Export Company chairman M H Rahbari told reporters.
Mr Rahbari, who is holding technical discussion with the Indian side on the 2775-km pipeline, said it would be constructed in five years' time. On the security of supplies, he said: "The pipeline is required by everybody. All partners need it and this is an assurance for safe delivery."
