Press Releases

[New Delhi, February 16, 2005]

Indo- Iran Gas Pipeline
NIGEC agrees to GAIL’s proposal of deliver point of gas at Indian Border

(Sl. No. ND/CC/05/15)

In a major breakthrough in the ongoing discussions between India and Iran on the Iran –Pakistan - India gas pipeline, NIGEC (National Iranian Gas Export Co.) has agreed to have the delivery point of gas at Indian border. This proposal of Indian side led by GAIL was accepted by NIGEC in a high level meeting on 15th February 2005.

During the discussions, it was decided that a Broad Overarching Agreement between the three countries involved (India, Iran and Pakistan) would be desirable to conclude the issue expeditiously. GAIL will provide all information related to Indian side for completing the detailed feasibility study for the pipeline, which is scheduled to be completed by June this year. It is also likely that negotiations for the delivered price of gas at the Indian border would be concluded by June, 2005.

The two sides will again meet in Tehran later this month to examine critical commercial conditions such as quantity, price and security of supplies, delivery point and alternative routes of supplying the gas to the Indian border. The road map in respect of specific stages of the proposal as well as the terms sheet are also likely to be finalized during this meeting.