Former Pakistani Oil Minister Usman Aminuddin on Friday made a strong appeal to India to consider importing natural gas from Iran through an onland pipeline passing through Pakistan.
"This is a project whose time has finally come. Pre-feasibility results are encouraging and project fundamentals are strong. It provides long-term energy supply to the mutual benefit of all parties," he said, delivering a lecture on 'Present Status and Future Prospects for the Development of Oil and Gas Sector in South East Asia' in New Delhi.
Advocating the involvement of private sector in the $1.8 billion pipeline project, he said New Delhi would get energy at affordable price and supplies would be guaranteed through inter-governmental agreements.
"Private sector participation would enhance the security of supply by increasing pressure on governments to avoid unilateral acts that could close the pipeline," he said.
Aminuddin said the involvement of international institutions would similarly reassure consumers, suppliers and international companies.
"The World Bank, Asian Development Bank, and the Islamic Development Bank have a strong interest in such a project," he said.
"I do not believe that political aspects of India and Pakistan can today overshadow this project. US opposition to any project that would benefit Iran will be one of the biggest hurdles. A unified approach would encourage US to change its policy," he added.
Aminuddin said disruptions in supplies through the pipeline by terrorist acts could be hedged by creating strategic gas storages in central Pakistan that could be used in times of crisis.
"There are two possible storage sites in Pakistan -- central and northern fields. The central fields (Sui) are porous limestone structure while northern fields have fractured limestone structure and are deeper than Sui.
"Pipeline gas provides the best opportunity for the development economy due to its competitive price, stable and long-term supply. The security and quality of supply is guaranteed by long-term contracts on take or pay principal," he said.
Pakistan is pushing for the onland pipeline as it stands to earn huge transit fee from the Indo-Iran gas conduit. India on the other hand is wary about the safety of delivery of gas and has instead preferred the costlier option of turning natural gas to liquid in Iran and then shipping it to India.