ISLAMABAD, June 5: Pakistan and India on Sunday discussed wellhead gas price, transmission cost and transit fee of the Iran-to-India gas pipeline through Pakistan and agreed that land route was technically and economically the most viable option for the project. The Indian side also asked Pakistan to allow import of diesel and other petrochemicals from New Delhi and indicated to become part of proposed gas pipelines from Turkmenistan and Qatar.

In this regard, Indian Oil Minister Mani Shankar Aiyar asked Islamabad to invite him to future meetings on Turkmenistan and Qatar gas pipelines.

The two sides will continue discussions on Monday and issue a joint communiqué at the conclusion of the two-day talks. The Indian delegation was led by Mr Aiyar and his counterpart Amanullah Khan Jadoon led the Pakistani side.

The Indian minister will call on Prime Minister Shaukat Aziz and Commerce Minister Humayun Akhtar on Monday to formally seek approval to export diesel and other petroleum products to Pakistan.

Mr Aiyar told a news conference after the first round of talks that both India and Pakistan had shared interest in the pipeline project as buyers and should adopt a shared strategy to negotiate a better gas price with Iran.

When asked whether the two countries had agreed to adopt a joint modus operandi for negotiating gas price with Iran, he said both sides had agreed that the price should be affordable. “Iran does not suffer on selling gas but we both countries will be buying the gas at affordable prices,” he added.

Mr Aiyar said both countries discussed the issues of wellhead prices, cost of transmission and transit fee. These issues would be further discussed on Monday and future discussions would be carried out in technical meetings till these issues were resolved.

Responding to a question about the pipeline transit fee to be paid to Pakistan, he said the issue would be resolved in line with international standard practices.

He said Pakistan officials gave a detailed briefing on Pakistan’s gas economy on the first day of discussions and details about the oil and gas reserves in Pakistan and its energy requirements at the official level for the first time.

Mr Aiyar said the Indian side also shared its gas needs in the meeting. Both sides had agreed to share knowledge about their respective studies on gas pipeline projects.

When asked whether the Indian side had raised any concern about the security of the pipeline and uninterrupted gas supply, he said the Pakistani prime minister and the petroleum minister had promised to address New Delhi’s concerns on the issue.

When asked whether he took up his proposal to make China a part of this project, he said it was his dream but he did not discuss the matter during the meeting. “Ministers only dream and babus implement the dreams,” he said. Some years back gas pipeline from Iran via Pakistan to India was a dream, he added.

However, he said he would be visiting Beijing some time in November and he would ask the Chinese authorities on his own to become part of this project.

Mr Aiyar said Pakistan had been informed that India wanted gas and LNG from Iran, and also from Turkmenistan and Qatar. He said India wanted to import gas from everywhere keeping in view its needs.

He said he had asked his Pakistani counterpart to invite him to future meetings of the steering committee of Turkmenistan, Afghanistan and Pakistan gas pipeline for the import of gas from Turkmenistan. He said a section of the gas pipeline from Qatar would pass through the sea and India had asked Pakistan to provide details of the feasibility study on the Qatar gas pipeline for its examination.

The Indian minister said both sides had agreed to jointly study the pre-feasibility studies carried out by the BHP Company about the Iran-Pakistan-India gas pipeline, but said since the studies were conducted quite a long time ago they were required to be updated in view of the latest gas requirement of both countries.

Mr Aiyar said: “We want the mutual trade based on mutual investment also. In this regard I will meet Commerce Minister Humayun Akhtar on Monday for export of diesel and other petrochemicals to Pakistan. Trade of hydrocarbon would help improve the lot of poor people of both the countries.”

About the US pressure on the pipeline project, he said India would decide about the project as per its gas requirements and added that New Delhi was not under US pressure on this issue.

Mr Aiyar said that discussions on gas pipeline were currently at the preliminary information-sharing stage.