ISLAMABAD, Feb 18: Pakistan is close to signing a pricing formula with India and Iran on building a much-delayed $7 billion pipeline to bring gas from Iran to South Asia.

This was stated by Prime Minister Shaukat Aziz here on Sunday while inaugurating the third International Oil and Gas Conference.

“We are very close to agreeing on tariff,” Mr Aziz told a gathering of oil and gas industry officials in Islamabad. “We are in a very advanced stage and I think we are very optimistic.” Despite being bogged down at times by tense relations between Pakistan and India and opposition from the United States, industry officials said the three countries are likely to sign an agreement on pricing in June, which would be based on a price framework suggested by a British consultant, removing the major stumbling block to the project.

The prime minister said that a proposed gas pipeline from Turkmenistan through Afghanistan to Pakistan was another option to meet the country’s energy needs.

“This is also an option. I would not put it off the table but it is not on the front,” he added.

—Reuters

Our reporter adds: Prime Minister Aziz said that Pakistan’s energy requirements were set to increase by 8 to 10 per cent annually and more than double to 177 million tonnes of oil equivalent (TOE) from the current 58 million TOE.

The conference was organised by the Petroleum Institute of Pakistan (PIP) here. The premier said the sharp increase in primary energy requirements was because of enhanced economic activity and growth, which had been in the region of six to eight per cent over the past few years.

“We hope to sustain this level of economic growth. However, we need to ensure that our energy supplies keep pace with the rising economic activity”, he remarked.

“Pakistan is one of the most attractive destinations for foreign investment in the oil and gas sector. The foreign companies, which operate in Pakistan, have expanded rapidly. This should give confidence to other investors who can avail the opportunities available here,” the PM said.