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Sanctions not to hurt Iranian oil industry, gas pipeline to Pakistan: minister
AFP
ISLAMABAD
Petroleumworld.com 04 30 06
A proposed gas pipeline from Iran to Pakistan and India will not be affected if the United Nations imposes sanctions on Tehran over its controversial nuclear programme, an Iranian minister said Sunday.
"I don't think anybody could put sanctions on the oil industry and gas industry," Deputy Oil Minister Mohammad-Hadi Nejad-Hosseinian told a press conference in Islamabad after three days of talks on the project.
"Due to the sensitivity of the oil market any action like that will increase oil prices very high and I believe that the UN and any other body will not put any sanctions on oil or the oil industry," Nejad-Hosseinian said, when asked about the future of the project if sanctions were imposed.
The International Atomic Energy Agency Friday confirmed that Iran had not complied with a UN Security Council demand to freeze uranium enrichment, which can be used to make the explosive core of nuclear bombs.
The United States and European powers are now poised to seek a Security Council resolution legally obliging it to meet IAEA and Council demands.
If Iran still refuses, such a resolution could pave the way for economic sanctions or even military action, although Tehran's major trading partners, Russia and China -- which have a veto on the Council -- oppose any such move.
Iran insists its nuclear programme is a peaceful effort to generate electricity and therefore entirely legal.
The 2,600-kilometre (1,600-mile) pipeline from Iran's southern Pars field is estimated to cost more than seven billion dollars. Talks between India, Iran and Pakistan on the project ended in March in Tehran without any agreement
The United States objects to the project and is pushing for another pipeline to South Asian countries from Turkmenistan via Afghanistan. Washington accuses Tehran of supporting terrorism and attempting to make a nuclear bomb.
Pakistan, despite being a key US ally in its global "war on terror", has said it would go ahead with the Iranian pipeline project as it needs energy to fuel its economic growth.
"Pakistan is viewing this project keeping in view its energy requirements," petroleum secretary Ahmad Waqar told reporters.
Pakistani and Iranian officials discussed gas pricing and agreed to enhance off-take volumes of gas from 2.1 billion cubic feet per day (bcfd) to 2.8 bcfd in case India does not join the project, Waqar said.
The officials would meet again on May 25 in Islamabad and the petroleum ministers of the two countries would sign a joint declaration on the project in Tehran in June, he said.
AFP 30 04 06 0954 GMT
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