ISLAMABAD, Dec 31: Iran has sought gas distribution rights in Pakistan as primary distributor so that it could sell imported gas directly to the wholesalers, Dawn has learnt.

Iranian deputy minister for international affairs Nejad Hosseinian who held a meeting with finance minister Shaukat Aziz here on Wednesday also offered to supply bulk gas supplies to Pakistan at Iran-Pakistan border.

Mr Hosseinian is currently leading a six-member delegation here as part of working group meeting on Iran-Pakistan gas pipeline project. The working group meeting concluded on Tuesday.

He told the finance minister that whole 1,500-km pipeline could be constructed at a total cost of $1.8 billion provided both sides laid pipeline within their territory and up to the Iran-Pakistan border.

On the other hand, the cost of Turkmenistan-Afghanistan- Pakistan (TAP) pipeline has been estimated at $3.2 billion while the gas import from Qatar would also cost in excess of $3 billion.

The Iran-Pakistan gas pipeline, owing to about 60 per cent lower project cost, could result in lower gas delivery costs and hence reduce gas tariff marginally when compared with other gas import options, the minister was told.

Finance minister Shaukat Aziz told the visiting delegation that the proposals would be looked into from the economical and cost analysis basis and would be pursued accordingly, the sources said.

Meanwhile, an official statement said the finance minister told the delegation that consumption of hydrocarbon was expected to increase with improved macro-economic stability and higher growth rates as they were required for rapid industrial production and to meet the consumers demand.

He said Pakistan was in the process of negotiations with Iran, Qatar and Turkmenistan construction of gas pipelines. However, close proximity of Iran with Pakistan make the two countries in a better position to launch cost effective projects for economic benefit of both countries.

He said Pakistan would study these proposals and the ministry of petroleum would refer them back to Iranian government. He also indicated convening of the Iran-Pakistan Joint Economic Commission (JEC) meeting in the next month to increase the existing bilateral trade, investment and economic cooperation.

The minister said Pakistan and Iran had deep historical, cultural and religious relation and economic relations need to achieve the same level with the help from government and private sector of both countries.