NEW DELHI, Feb 21: India may agree to the price that Iran is asking for its natural gas to flow through the proposed Iran-Pakistan-India pipeline.

An Indian team leaves for Islamabad on Thursday to negotiate the transit fee. Pakistan will charge for the overland pipeline. Both sides will also discuss the project structure and financing mode. An Iranian team will attend the meeting as an observer.

Iran last month scaled down its demand to $4.93 per million British thermal units (BTU) for gas to be sold at its border with Pakistan, but India sought a lower price with the pricing based on a five-year average of crude oil prices instead of Iran's offer for a 10-month average.

At Iran's price, India feels 25-year Sales Purchase Agreement would be too long, considering domestic availability once gas finds on India's east coast are brought onshore.

Iran told India if it did not agree to the prices, Iran and Pakistan would go ahead for a bilateral arrangement.—PPI