Pakistan may face US sanctions if it goes ahead with Indo-Iran gas pipeline

Amid Indo-Pak efforts to firm up the India-Iran gas pipeline project to be laid through Pakistan, US has reportedly cautioned Islamabad over the likelihood of facing sanctions if it went ahead with the four billion dollar project disregarding Washington's concerns over Iranian nuclear programme.

While Pakistan's Foreign Minister Khurshid M Kasuri during his meeting with US Secretary of State Condoleeza Rice last week made out a strong case for Islamabad opting for the project to meet its future energy requirements, Rice reportedly asserted Washington's concerns over the project. She told Kasuri that the project could violate Iran and Libya Sanctions Act of 1996 of US (ILSA), which forbids more than 20 million dollars investment in Iranian oil sector.

During their meeting, Rice informed Kasuri that the project was against the US laws and the violator can be deprived of American economic assistance and may also face sanctions, Pakistan daily 'Dawn' quoted Pakistani diplomats as saying.

'Decision on Iran-India-Pak gas pipeline in two weeks'

A decision on the multi-billion-dollar gas pipeline between Iran and India which will pass through Pakistan will be made in two weeks, a senior Iranian Minister said here today.

"We are in the pit field of decision-making," Iran's Senior Deputy Energy Minister Reza Amrollahi told reporters on the sidelines of the two-day Asia Oil and Gas conference. He said an announcement will be made in two weeks.

The 2600 kms-long proposed pipeline will supply gas from Iran's South Pars offshore fields.

India and Pakistan last week agreed to sort out transit, legal, financial and structural issues by year end for the 4.16 bn USD pipeline to take-off from early 2006.

New Delhi hopes to import 60 million standard cubic meters per day of gas through the pipeline, 760-km of which will pass through Pakistan, by the first half of 2010 and ramp up imports from Iran to 90-100 mmscmd by 2015.

Pakistan will also tap some 60 mmscmd of gas from the pipeline and also earn transit fee for allowing its territory to be used for passage of the pipeline.

Earlier, addressing the conference Malaysian Prime Minister Abdullah Ahmad Badawi asked Asian countries to engage in "energy diplomacy".

He cautioned that with Asia expected to account for most of the energy demand, the race to secure energy resources among national oil companies would become intense.

"Under these circumstances, it would seem that a viable strategic option for Asia lies in a political commitment to cooperate in energy diplomacy," he told the Conference.

hey guys i have a doubt in my mind that.... we're gettin a gas pipe line through pakistan alright its cool ...but what if in case of any war with pakistan wudnt they black mail us and stop the gas supply or destroy the pipeline...coz we cant trust paki's ..well guys plz explain me the advantages n disadvantages of this pipe line ...like what can b the worst case scenario .... thanx in advance

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