Iran-India Pipeline Problems

The gas price will increase in India if the proposed Iran-India gas pipeline via Pakistan fails to get off the ground, as alternative supply sources will be more costly, Iran?s Deputy Minister of Foreign Affairs Ali Majedi said Wednesday.

He said, ?Further delays in the pipeline will result in costlier and less reliable alternatives.?
Other supply routes from central Asia are fraught with ?geopolitical, capacity-linked constraints,? he said. Mr Majedi also said that concerns regarding relations between India and Pakistan remain and have weighed on the pipeline project.

Iran, which borders Pakistan and has large proven natural gas reserves, proposed the gas pipeline project to India five years ago. However, the project is yet to get off the ground due to security concerns, as the pipeline has to run through Pakistan.