U.S.-Iran nuclear deal can help revive IPI project

 Analysts say that the Iran-Pakistan-India pipeline project can be revived if a breakthrough is achieved in the nuclear talks between Iran and the six global powers — U.S., Russia, China, France, Britain and Germany.

“There is already a perceptible softening of stance towards Iran among international oil majors. A political deal, if it materialises, will cement Tehran’s possible reintegration into the global economy and raise its regional standing in West Asia,” sources said.

In his Budget speech, Finance Minister Arun Jaitley announced the government’s intention to encourage exports of hydrocarbons to Pakistan. Official sources said the gas would be first imported to the LNG terminal at Dahej. From there, it would be transported along an existing pipeline network to Jalandhar, which would become the transit hub for Pakistan, connected by a new 103-km pipeline to be laid by GAIL (India) Ltd. Besides, the new products pipeline proposes to transport diesel and kerosene from the Bhatinda refinery in Punjab to Lahore.

Pakistan has responded positively to the proposal. “I can assure you both sides are working overtime to hasten the process,” Pakistan High Commissioner Abdul Basit said in a conversation with The Hindu on Friday. He stressed that Pakistan Prime Minister Nawaz Sharif had stated his intention to buy 500 megawatt of power from India.

The Pakistani diplomat was optimistic that a project or two could materialise quickly.

“We are working towards it… [the experts are] hammering out technical details… some private players are also interested in exporting energy to Pakistan,” he said.