BHP Billiton, the Australian consultant which carried out pre-feasibility survey of the Iran-Pakistan-India gas pipeline, has said that the 2775-km long pipeline project has sufficient safeguards to prevent any disruption in the supplies.
In a presentation to the petroleum ministry, BHP Billiton said the delivered cost of Iranian gas would range between $2.40 and 2.49 per million British thermal unit (mBtu).
"Pakistan will earn $199 to 413 million (depending on volume) in transit fee," it said. Transit fee would be $0.33 per mBtu ($0.047 per mBtu per 100-kms).
The pipeline would be laid 0.9 to 1.5 metres below the surface and would use fiber-optic cable sensing systems with a back-up satellite link. Maintenance units will be located every 150 km with pipe sections ready to install if there is a disruption to the pipeline.
Any disruption to the pipeline can be rectified within 2 to 3 days, the duration for which the pipeline would always maintain line-capacity (gas volumes).
As additional caution, BHP has recommended that both India and Pakistan build gas storage facilities that could take care of a fortnight's demand. Besides, Tehran would back up supplies with LNG if piped gas is disrupted for long.
BHP said there were provisions against Pakistan disrupting supplies to India. The point on the pipeline from where Pakistan will offtake the gas will be only 60 km from the Indian border and there will be no valve further down the line till it enters the Indian territory.