NEW DELHI, July 23 (UPI) -- The Iran-Pakistan-India natural gas pipeline will provide a substantial benefit to all three countries involved despite modest obstacles, New Delhi says.
Indian Petroleum Minister Murli Deora has been touting the national interest in the project to bring gas to his country from the South Pars gas field in Iran, one of the largest in the world.
"We are very sure that the pipeline project is good for India, Iran and Pakistan," he said.
But beyond political interest in the project, it has faced decades of setbacks over pricing mechanisms, gas custody and security concerns along the intended route, Pakistan's News International reports.
Deora said various pricing issues remain with Pakistan, while custody issues linger with Iran.
Iran and Pakistan signed a bilateral agreement on IPI in June, with Pakistan securing 50 million cubic feet of gas per day for the generation of some 5,000 megawatts of energy under the terms of the 25-year contract.
The role for New Delhi in IPI was a point of speculation. Its Western allies oppose any project that provides economic benefits to Iran, including IPI. India has also secured a deal for civilian nuclear energy with the United States, allaying some energy concerns.
