Islamabad, Sept 16 : In what would further delay the IPI (Iran-Pakistan-India) gas pipeline project, Iran has demanded a revision of the gas price formula earlier agreed with Pakistan.

Sources in Pakistan Petroleum Ministry said that Iran’s demand would further delay the gas pipeline project, the estimated cost of which is 7.4 billion dollars.

They said that after the repeated hikes in international oil prices recently, Iran wanted to change the gas pricing formula and revise the gas tariff while following the trend in the international market, reported the Daily Times.

They added that during the caretaker government’s term in office, Pakistan and Iran had finalised the draft of the Gas Sales Purchase Agreement (GSPA). The two sides agreed to link the gas tariff with the Japan Crude Cocktail price.

Iran is learnt to have conveyed to the Pakistan government that it wanted to revise the gas pricing formula after three years, and, on the other hand, the Pakistan government maintained that a revision in the gas price would be possible only after four years.

According to the sources, the two sides would discuss the gas pricing formula during a meeting in Tehran later this month.

Earlier, both Pakistan and India wanted a fixed price for the gas imported from Iran, but the caretaker government (in Pakistan) had agreed to a periodic revision of gas prices. During the meeting, the issue of gas transit fee between Pakistan and India would also come under discussion.

Earlier, a committee formed by the Iranian President to resolve the issue of gas transit fee between Pakistan and India had failed to find a solution. Pakistan had demanded 60 cents per MMBTU transit fee during the talks here on April 25 between the petroleum ministers of Pakistan and India. But, New Delhi was not ready to give over 15 cents per MMBTU gas transit fee to Islamabad on gas transmission to its territory.

The paper quoted an official as saying that the technical and financial feasibilities of the IPI project were now being prepared with the assistance of international consultants. Expressions of interest would be invited from interested parties through international bidding. (ANI)