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IPI 'not in final shape,' Pakistan says

ISLAMABAD, Pakistan, July 16 (UPI) -- Planning for the Iran-Pakistan-India gas pipeline is delayed while lawmakers consider the best route for the project for Pakistan, officials say.

Iran and Pakistan in June signed bilateral agreements on the so-called Peace Pipeline from the South Pars gas field in Iran.

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The pipeline is plagued by concerns over pricing mechanisms and volatility along the intended route for the pipeline, particularly in the Pakistani province of Baluchistan. India's role in the project remains in doubt, though New Delhi said recently it was considering its options.

Pakistani Prime Minister Yousaf Raza Gilani has asked for considerations of the IPI route to include offshore routes to allay parliamentary concerns over the price and security of the gas pipeline, though lawmakers complain that consideration will cause further delays.

As a result, Asim Hussain, the top energy adviser to Islamabad, said IPI is "not in final shape" as lawmakers consider the route for the pipeline, Pakistan's News International reports.

Regardless, officials in Islamabad said gas could flow through IPI as early as 2013 as national ventures for the project develop.

Meanwhile, the government said the price differential for Pakistani oil shipments to NATO forces in Afghanistan is attracting smugglers, who are transporting the oil back to Pakistan.

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Hussain said, however, that the volume of oil smuggled was "not a huge one."

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