ISLAMABAD, Pakistan, March 20 (UPI) -- A committee in the Pakistani government has removed one of the final obstacles for the $7.4 billion Iran-Pakistan-India gas pipeline.
Islamabad's Economic Coordination Committee approved what it described as a "rationalized" import price for gas from Iran through IPI, the Daily Times of Pakistan reports. The price pegs gas at 80 percent of world crude averages.
Pakistani officials had earlier negotiated with Iran for a price that was 70 percent of the price of crude on the world market, to which Tehran acquiesced somewhat.
IPI talks have been delayed for years by disputes over price and the security of the pipeline route.
An ECC statement quoted by the Times said the gas-sales purchase agreement for IPI calls for imports approaching 1 billion cubic feet of natural gas per day.
Initial total capacity estimates approach 3.8 billion cubic feet of gas per day through the proposed 1,724-mile pipeline.
The ECC had asked the Pakistani Petroleum Ministry to get approval from the central government before moving ahead with a purchase agreement for the Iranian deal.
