varnam

2005 seems to be the year of pipelines. India has signed an agreement with Iran, but the transport protocol has not been decided yet. On the Eastern border of India, Bangladesh and Myanmar have agreed to build a gas pipeline.

Land based gas pipelines are much cheaper than transporting it via tankers or deep sea pipeline and hence all this enthusiasm for building it even though it is through a country like Pakistan. Other than economics, the gas pipelines also give the countries involved an opportunity to indulge in some image improvement exercise as well as build relations.

For Iran, Indiaâ??s participation in the project is of paramount importance. In addition to a broader market for its gas Iran hopes to gain political support from India as it is facing strong international pressure to terminate its nuclear program. In return for India's agreement to buy large quantities of gas, Iran has awarded Indian gas companies major service contracts and also granted them participation in refining and other energy related projects to the tune of $40 billion. Iranâ??s relations with Pakistan are also strategically important. With American troops stationed in neighboring Afghanistan and Iraq, Iran is trying to check U.S. influence in the region by strengthening its ties with Pakistan, one of Americaâ??s most needed allies in the war on terror. The Pakistanis, for their part, would like to see their territory used as a transit route to export natural gas to India. This would not only guarantee a source of income for them but also increase stability in the region. Pakistani Prime Minister Shaukat Aziz said the Iran-Pakistan-India gas pipeline is "a win-win proposition for Iran, India, and Pakistan," that could serve as a durable confidence-building measure, creating strong economic links and business partnerships among the three countries. [Iran-Pakistan-India pipeline: the Baloch wildcard]