The much-delayed Iran-Pakistan-India (IPI)
,Tehran
pipeline
is facing yet another block,
as Iran wants legal protection in case of armed conflict disrupting natural gas
supplies through the proposed line.
Iran
is known to have been demanding changes in the under-negotiation Gas Sales and
Purchase Agreement (GSPA) with consuming nations, to insulate itself from
payment of penalties in case of non-supply of natural gas due to
an armed conflict. The amendment to the force majeure clause is being
opposed by India which wants Tehran to make alternate arrangements like shipping
gas in its liquefied form (LNG), in event of
any disruption.
India
wants Iran to commit to the principle of 'supply-or-pay'
, instead of the 'take-or-pay' clause that others are agreeing to. India
also wants the ownership of the natural gas to be transferred to it at
Pakistan-India border and
that
Iran
should be liable for safe passage of the fuel in Pakistan as India will pay only
if gas is delivered at its border.
New
Delhi is also opposed to
Iran's
insistence on revising the gas price every three years. It believes the pricing
formula agreement between the three nations was for the entire 25-year tenure of
the project.
India
and Pakistan are to buy 30 million standard cubic mtrs per day of gas each from
the proposed pipeline. Such obstacles are only adding more
delays to the already delayed project.