India-Iran-Pipeline
Energy pipelines are said to be the economic lifeline of a region, given the increasing energy-dependence of the producers, the transit states and the market-states. This can create a bond of intra or inter-regional interdependence among these countries.

The Iran-Pakistan-India (IPI) gas pipeline or "Peace Pipeline" gains significance, if discussed within this context, said Sreemati Ganguli in an article published in a leading english daily "The Statesman".

This proposed 2,775-km pipeline project is expected to carry gas from Iran's South Pars gas field to reach the Indian market through Baluchistan and Sind in Pakistan. The project is estimated to cost $ 7 billion and is projected to carry around 90 million standard cubic meters (MSCM) of gas per day, of which 30 MSCMs will be for Iran's domestic consumption. The rest will be equally shared by India and Pakistan.

This project was conceptualised by R K Pachauri and the former Deputy Foreign Minister of Iran, Ali Shams Ardekani, in 1989. It was presented to the governments of India and Iran in 1990. But since then the pipeline project has met with a number of operational difficulties and uncertainties, notably the US sanctions on Iran (under the Iran- Libya Sanctions Act), the probable insecure ground realities in those parts of Pakistan through which the pipeline has to pass, and the dispute over the cost India has to pay to both Iran and Pakistan.

For example, in 2006 Iran demanded a price of $ 7.20 per million British thermal unit of gas against India's offer of $ 4.20 per million British thermal units. Both India and Pakistan later agreed in February 2007 to pay Iran $ 4.93 per million British thermal units, subject to further negotiations on price adjustments.

Similarly, Pakistan wanted $ 0.7 per million British thermal units as transportation tariff, against the Indian offer of $ 0.55 per mBtu.

They eventually agreed to base the pricing on the actual cost of constructing and operating the 1,035 km part of the pipeline within Pakistan. Negotiations are on over the actual amount of separate transit fee payable to Pakistan. The negotiations on the final status of the project are still in progress.

Given the choice of routes, the countries involved in the project need to work out a compromise formula of geo-politics and geo- economics. And in the post-Cold War era, this is relevant to any pipeline project.