Friday, January 06, 2006

Pipeline Politics: Asian Bank Vs. USA!



Daily Times, January 5, 2006
Iran-Pakistan-India pipeline: US against deal
* ADB experts say project feasible

WASHINGTON: The United States said it was “absolutely opposed” to a natural gas pipeline project linking Iran with Pakistan and India, even though an Asian Development Bank (ADB) expert saw it feasible.

Iran is reportedly nearing a deal with the two neighbours for the 2,600-kilometre pipeline costing more than $7 billion.

“The US government supports multiple pipelines from that (the Caspian) region but remains absolutely opposed to pipelines involving Iran,” senior State Department official Steven Mann told a forum in Washington late Wednesday.

The US accuses Iran of trying to build a nuclear bomb and being a state sponsor of terror. Mann, the special negotiator for Eurasian conflicts in the State Department’s bureau of European affairs, spoke after an ADB expert told the forum that the Iran-Pakistan-India pipeline and another pipeline linking Turkmenistan, Afghanistan and Pakistan were both feasible.

Dan Millison, ADB’s senior energy specialist, said at the meeting organised by Johns Hopkins University that his assessment was based purely on economic grounds and demand from energy-guzzling India and Pakistan.

He said that generally, “piped gas was economically favourable versus LNG”.

“TAP (the Turkmenistan-Afghanistan-Pakistan project) and the Iran-Pakistan-India options appear viable and competitive versus LNG,” Millison said. Mann said any success of the Turkmenistan-sourced project depended on long term market and supply reliability and participation of “heavy hitters” from the private sector.

India, Pakistan and Iran have said they hope to conclude a deal by June 2006 despite US opposition. They plan to hold further talks in February in Tehran. India has said construction of the pipeline should start in 2007 and be operational by 2011. Millison said although the trans-Afghan gas pipeline was shorter and less costly, as of last month, India and Pakistan were “moving forward” with the Iran project.

A multilateral institution official, who attended the Washington meeting, said a key question was whether India and Pakistan were prepared to go ahead with the project despite US opposition. He thought India might forge ahead but a US official beside him said New Delhi might not sacrifice its “long term interest” with Washington. afp

2 comments:

Abhishek Upadhyay said...

Iran-Pak-India pipeline is very less probable to happen considering the bullishness of States these days.
Though Pakistan is considered that it will toe to the demands of America, it is going ahead with the plans and discussing about it with India.India and Pakistan have lot more to gain then lose with this pipeline, only thing is, will they go for this gain and invite the wrath of superpower.
Now If both the countries go ahead with the project, what will USA do? It needs India to neutralise Red China. The growing economy of India is more alluring to States and in coming years so will be the market of Pakistan which also has a good population.
USA needs Pakistan to keep a check on Afghanistan and to see to it that China does not have access to Arabian sea via Balochistan. The Kind of development going on in Baloch and its neighbouring areas clearly shows that China is planning something big.At this stage Usa wont like Pakistan to go away from it.
So, if India and Pakistan loses something by going ahead with the project, will be very less considering their need for States in world politics in coming years.
But the way India went with USA by voting against Iran at UN conference has created a big suspicion.India may trade this issue with something else. Also considering the long dependence of Pakistan on USA, you cant be sure on which way it will move.

It is really a very good project and will be very beneficial for energy demands of India and Pakistan...but this Bush...

Anonymous said...

Yes, absolutely it will be great for all parties to have this pipeline - but Iran's hawkish attitude is a major issue here from the US perspective. Pakistan is too dependent on the US to refuse to listen to it and India also appears to be in the process of becoming a very close ally of the US. Still, I think the final say in this case will be of India - as it is a democracy and a decision will be taken keeping the public opinion in view - majority of Indians apparently are not keen to be in a subservient position to the US policy decisions. Still, India may refuse to be a part of the project for another crucial reason - serious insurgency in Baluchistan from where the pipeline has to pass...