NEW DELHI: India is awaiting Pakistan's reply to start talks on a proposed gas pipeline from Iran even as similar talks have been taken up with Bangladesh for sourcing the fuel from Myanmar, Petroleum Minister Mani Shankar Aiyar has said.

"I have suggested to my Pakistani counterpart that we could start a dialogue about using Pakistan as a transit corridor for bringing Iran gas to India," Aiyar told the annual Economic Editors' Conference here Wednesday (Nov 17).

"We have also started a dialogue with Bangladesh to use the country as a transit corridor for bringing Myanmar gas. If these two proposals are agreed upon, it would considerably enhance India's energy security," Aiyar said.

India has taken a 30 percent equity stake in the gas rich A-1 Block off the shores of Myanmar and is expected to finalise a deal for another 30 percent in A-3 Block.

The talks with Bangladesh were focussed at trying to find out the conditions under which it would agree to allow the transit of gas from Myanmar.

Aiyar said this would be the first attempt to have a direct dialogue with Pakistan on the Iran gas pipeline project.

"We hope we will have a good beginning. A reply to my letter is still awaited," the minister said.

Aiyar is also expected to raise the issue during the visit here of Pakistan Prime Minister Shaukat Aziz next week.

According to official sources, India did not want to invest in the project but was looking to be an offtaker when the pipeline entered the border.

"We are seeking transit corridor through Pakistan for supply of gas at a border point from where we would set up the pipeline infrastructure," a senior petroleum ministry official told IANS.

A study commissioned by Iran through global resources company BHP Billiton with approval from Pakistan says the pipeline can enter India through Rajasthan.

Another offshore pipeline study commissioned jointly by Iran and India is still pending.

Indian experts estimate that imports of less than 40 million cubic metres gas per day or 10 million tonnes per annum would be unviable.

Pakistan's requirement of gas is estimated to be much smaller, at around 10-15 million cubic metres per day.

"The estimated $200-300 million transit fee India may have to pay would make Pakistan's share of gas virtually free," official sources said.

India's current indigenous gas production is just half the domestic demand.

Although there are other ways of bringing the fuel to India, the minister said the pipeline route was cheaper and environment friendly.

"Our effort would however always be to source oil and gas bearing in mind the twin consideration of national security and energy security," Aiyar said.

In both the pipeline projects, India is letting the source countries take the lead in bargaining with the intermediate country, sources said.

Indo-Asian News Service