ISLAMABAD, May 21: Pakistan and Iran on Sunday proposed divergent price formulae for their gas pipeline project, indicating a wide difference of opinion on gas pricing.

Sources said that Iran had come up with a new formula, linking the price of its gas with South East Asia-Qatar market. Under the formula, Iran reduced its demand about gas delivery at the Pak-Iran border but it still exceeded Pakistan’s purchasing capacity.

The sources said Pakistan’s counter-proposal set the price at 30 per cent of the price of oil it imported from the UAE. They said that the Pakistani side had presented its formula and had asked the visitors to respond by Monday.

The two formulae have a difference of more than $3 per MMBTU (million British thermal unit), the sources said. The two sides, they said, had agreed to keep the discussions on prices strictly confidential.

But they said that Iran was quoting a gas sale price in the range of $6-8 per MMBTU while Pakistan’s offer ranged between $3.5 and $4 per MMBTU.

The two-sides would continue their talks on gas pricing and project structure on Monday.

An official statement said the eighth meeting of Iran-Pakistan bilateral working group held discussions here on Sunday on the proposed gas pipeline project. Iranian deputy oil minister M. H. Hosseinian and secretary petroleum Ahmad Waqar led their delegations at the talks.

A two-day trilateral working group meeting of the project will be held on Monday.