Indian Petroleum Secretary S. Sundareshan said the Iranian government proposed holding talks on the project and India has agreed.

The last trilateral meeting between Iran, Pakistan and India to discuss the pipeline was held in July 2007. In 2009, Iran and Pakistan signed a gas sales purchase agreement for the project, however India has refrained from further agreements due to concerns about the pipeline’s security.

Meanwhile, local news sources have reported that Iran has started construction of the second phase of the 900 km IP Pipeline. Iranian Deputy Oil Minister Javad Owji has said that Iran will invest $US250 million dollars in this phase of pipeline construction.

Worth approximately $US3.2 billion, the IP Pipeline will carry gas from the Assaluyen field in southern Iran to Pakistan. The 42 inch diameter pipeline will have a gas transmission capacity of 750 MMcm/a.

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The original Iran – Pakistan – India pipeline proposal was to be 2,670 km long, running from the Assaluyen gas field to GAIL’s Hazira – Vijaipur – Jagdishpur pipeline in Gujarat.