ISLAMABAD, April 15: Pakistan and India are poles apart on the transit fee of the $7.4 billion Iran-Pakistan-India gas pipeline project, a senior official told Dawn.
The two sides were expected to further deliberate on the issue when they would hold a ministerial-level meeting early next month in Islamabad, the official said and added that India still continued to be engaged with the United States on the pipeline issue.
In a background discussion, the official said Pakistan had sought 10 per cent of the gas price on the Pakistan-India border as transit fee to provide right of way, security and safety to the pipeline and also involved taxes and other expenses.
At current oil prices, Pakistan expects transit fee at or around 50 cents per million British Thermal Unit (MMBTU). India is offering 15 cents per MMBTU).
For the argument sake, India is saying Pakistan should seek transit fee only for about 240km portion of the gas pipeline that will specifically be required up to the Indian border. It argues that since about 795km pipeline from the Pakistan-Iran border will also be utilised by Pakistan, there should be no transit fee for this segment.
The official said it was almost certain that the pipeline would enter Pakistan’s off- take point near Hyderabad and it would run about 795km with a diameter of 56 inches through the coastal route. The gas would then flow through a 240km pipeline of 42 inches diameter to reach Indian off-take point of Barmer, making a total of 103kms in Pakistan.
