Iran's state gas company National Iranian Gas Export Co (NIGEC) has announced that it had started negotiations with India on the construction of a US$4.5bn gas pipeline stretching from the Iranian coast to the Oman Sea and to Gujarat; the project would deliver 31.5 mcm/d and would be built in two years after the necessary approvals are granted and a gas sale and purchase agreement (GSPA) is signed.
India started discussing with Iran on the 1,036 km long Iran-Pakistan-India (IPI) pipeline but stopped participating in talks in 2007 due to security and commercial concerns though it never officially pulled out of the US$7.6bn project. Iran is developing the section to Pakistan and has proposed to extend the project to New Delhi. Gas supply from Iran, under the prices agreed in 2005, would be much cheaper than LNG supplies from Qatar. India is still taking part to the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline.
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