A conceptual design to build an underwater gas pipeline from Iran to Pakistan and India has been prepared, said the deputy for development and engineering affairs at the National Iranian Oil Company said.
"Talks are underway with Russia to decide the most economically viable plan to lay the pipeline," Gholamreza Manouchehri was quoted as saying by ILNA.
According to the official, the four countries have reached an agreement to complete the project and new memorandums of understanding will be signed soon.
Asked about a recently concluded MoU between Russia and Pakistan, he said that relates to identifying organizations that will contribute to and support the project.
Russian Deputy Energy Minister Anatoly Yanovsky and Pakistan's Additional Secretary for Energy Sher Afgan Khan signed the document in Moscow last week.
"A similar MoU is expected to be signed with Iran and India to specify the financial resources as well as configuration and route of the gas pipeline," Manouchehri said without elaboration.
The official noted that Russia and Iran had their first meeting on the subject in March and based on the results of the feasibility studies the four sides will decide the future course of action.
Russia is reportedly keen on promoting energy cooperation with Pakistan and the two countries have discussed several proposals related to the key energy sector, including construction of North-South Gas Pipeline, a 1,100 kilometer pipeline between the Pakistani cities Karachi and Lahore, import of liquefied natural gas from Russia and building a 600 megawatt combined cycle power plant.
Russia could help improve energy security for Pakistan through the delivery of liquefied natural gas, the Russian foreign minister said in February.
>Priority Issues
Russian Foreign Minister Sergei Lavrov was speaking about the potential to improve bilateral energy ties. Among the priorities would be the construction of a gas pipeline from Karachi to Lahore, he said.
"Other options are also examined, including deliveries of liquefied natural gas to Pakistan by Gazprom," he was quoted by Tass as saying.
Lavrov noted that Pakistan is ripe for Russian energy investments because of historical ties to the region.
Pakistan consumes most of the natural gas it produces and the country has faced power issues because of aging infrastructure. According to the Asian Development Bank, Pakistan's power sector has a gap between supply and demand of about 5,000 megawatts, which has put significant pressure on the prospects for economic growth.
Denying that the new project could replace the long-delayed Iran-Pakistan gas pipeline project, the NIOC official said the "Peace Pipeline project is a separate project."
Iran and Pakistan signed an agreement in 2009 to lay a pipeline to deliver 22 million cubic meters per day of gas from the South Pars Gas Field in the Persian Gulf to Pakistan's Balochistan and Sindh provinces.
Construction of the pipeline was to commence in 2012 and be completed in two years. However, Islamabad has failed to show the will and determination to complete the pipeline on its territory, blaming financial constraints.
According to reports, about 900 kilometers of the pipeline is laid on the Iran side of the border, but Pakistan has dithered over constructing 700 kilometers of the pipeline in its territory.
