India takes new look at IPI

NEW DELHI, July 21 (UPI) -- India will not succumb to outside pressure regarding its position on the Iran-Pakistan-India natural gas pipeline, the Indian petroleum minister said.

The Pakistan Interstate Gas Co. and the Iranian National Oil Co. signed IPI agreements in June to bring more than 750 million cubic feet of gas per day from Iran to Pakistan for the generation of some 5,000 megawatts of energy.

IPI would bring gas from the South Pars field in Iran, one of the largest gas fields in the world, to markets in Pakistan and India, though Western countries oppose any projects that provide economic benefits to Iran, including IPI.

The role for India in the project, however, remains uncertain.

New Delhi said in early July it would review its 2005 agreement on the project, while Indian Petroleum Minister Murli Deora said Tuesday the project was beneficial for all three parties, Asian News International reports.

Deora noted there were still obstacles in terms of the price mechanisms for gas from Iran, but stressed any decisions were for New Delhi to decide.

He added that former U.S. Energy Secretary Sam Bodman, who worked in the administration of George W. Bush, had cleared the New Delhi position on IPI.