TEHRAN (FNA)- Tehran and Islamabad have agreed on a revised price formula and a new price review mechanism for Iranian gas that will be piped to Pakistan, a senior Iranian official said.
The new formula and review mechanism update terms reached in 2006 during the long-running negotiations on the project that are part of Iran's effort to become a major gas exporter.
Hojjatollah Ghanimifard, the Iranian oil minister's special representative to the pipeline talks, said both sides agreed to amend terms because of changes in the energy market since 2006.
He said agreement was reached after two days of talks in Tehran.
"We agreed that the formula should be changed," he told Reuters, adding that the price review formula was also amended.
"One of the changes (to the review formula)... was that a year before the commencement of delivery of the gas we are going to have a price review. Of course, this can be an option that either side can use," said Ghanimifard, who is also a senior official in the state-owned National Iranian Oil Company.
He said the changes have to be approved by the authorities in both countries, after which details would be announced.
This could lead to setting a date for signing a contract, he added.
"Almost five years after the contract is signed we hope that the commencement of gas delivery starts," he said.
India had been part of the $7 billion pipeline project, but stayed away from talks in September saying it wanted guaranteed security of supplies as the pipeline should go through a restive province in Pakistan.
Hojjatollah Ghanimifard, the Iranian oil minister's special representative to the pipeline talks, said both sides agreed to amend terms because of changes in the energy market since 2006.
He said agreement was reached after two days of talks in Tehran.
"We agreed that the formula should be changed," he told Reuters, adding that the price review formula was also amended.
"One of the changes (to the review formula)... was that a year before the commencement of delivery of the gas we are going to have a price review. Of course, this can be an option that either side can use," said Ghanimifard, who is also a senior official in the state-owned National Iranian Oil Company.
He said the changes have to be approved by the authorities in both countries, after which details would be announced.
This could lead to setting a date for signing a contract, he added.
"Almost five years after the contract is signed we hope that the commencement of gas delivery starts," he said.
India had been part of the $7 billion pipeline project, but stayed away from talks in September saying it wanted guaranteed security of supplies as the pipeline should go through a restive province in Pakistan.
For more on this article, please click on the following link: Iran, Pakistan Agree on New Terms in Gas Deal: Fars News
Posts
No comments:
Post a Comment