Iran and Pakistan have signed in Turkey, the final agreement to launch the Iran-Pakistan gas pipeline with a provision for India's possible participation in the project at a later date.

According to the Islamic Republic News Agency (IRNA), Iran and Pakistan on Tuesday signed two provisions in Istanbul that would set in motion the broader Gas Sales Purchase Agreement (GSPA). The news agency said the two countries signed the Operational Agreement(OA) and the Heads of Agreement (HOA), which deals with details regarding the transportation of gas to India “if and when India decides to join the project”.

Under the provisions of the HOA, Pakistan will have the right to charge the transit fee for the transportation of gas to India. The transportation fee will be calculated in accordance with international practices, IRNA said.

Iran, in line with the provisions of the deal will provide Pakistan 750 million cubic feet of gas per day for the next 25 years, to generate 4000MW of electricity, the agency said. IRNA cited Pakistani analysts as saying the project could have a far reaching impact if India and China decided to participate in it. The 900-km pipeline is being built between Asalouyeh in southern Iran and Iranshahr near the border with Pakistan and will carry the gas from Iran's South Pars field.

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