INDIA-IRAN 2LST

New Delhi is also upset with Iran's frequent changes in
gas price. Iran had originally priced its gas at USD 3.2 per
mmBtu but later in 2007 revised the rates to USD 4.93 per
mmBtu at USD 60 a barrel crude oil prices, which was accepted
by India. Last year, it unilaterally revised it and according
to the new pricing formula, the fuel will cost New Delhi USD
8.3 at an USD 60 per barrel oil price at the Iran-Pakistan
border.
Added to this would be a minimum of USD 1.1-1.2 per mmBtu
towards the transportation cost and transit fee that India
would have to pay for wheeling the gas through Pakistan, they
said.
Sources said Tehran wants to transfer ownership of gas to
India at Iran-Pakistan border while New Delhi wants it to be
at the Pakistan-India border, thereby making Iran explicitly
responsible for safe delivery of gas.
While the 1,100-km pipeline from the South Pars gas
fields in the Persian Gulf to the Iran-Pakistan border would
be laid by an Iranian firm, New Delhi wants to take stake in
the 1,035-km pipeline section in Pakistan.
India feels that its participation in execution of the
pipeline in Pakistan would make the project more bankable,
reduce the financing cost, ensure timely execution and ensure
transparent and efficient management of operations, they said,
adding that Islamabad has so far not agreed to the proposal.
India wants in-built safeguards in the contract to ensure
safe delivery of gas at the India-Pakistan border. PTI