IRAN-PIPELINE 2LST

Sources said New Delhi is also upset with Iran's frequent
changes in gas price.
Iran had originally priced its gas at USD 3.2 per mBtu
but later in 2007 revised the rates to USD 4.93 per mBtu at
USD 60 a barrel crude oil prices, which was accepted by India.
Last year, it again revised it and according to the new
pricing formula, the fuel will cost New Delhi USD 8.3 at USD
60 per barrel oil price at Iran-Pakistan border.
Added to this would be a minimum of USD 1.1-1.2 per mBtu
towards transportation cost and transit fee that India would
have to pay for wheeling the gas through Pakistan, they said.
Gas from the Panna/Mukta and Tapti fields in Mumbai
offshore fetches the maximum USD 5.70 per mBtu, while Reliance
Industries' Krishna Godavari basin gas has been priced at USD
4.20 per mBtu if crude oil price was USD 60 or more.
Sources said Iran was not willing to commit to a
supply-or-pay regime wherein it would be held accountable for
non-delivery of gas at Indian border. It, however, wants New
Delhi to commit to a strict take-or-pay clause wherein India
would have to pay even if it does not take deliveries.
All it now says is that if Pakistan were to disrupt
supplies to India, Iran will make a proportionate cut in the
quantities to be delivered to Islamabad. PTI