It is hoped that the agreement between the two countries on the final price formula will be reached at least one year before Iran begins delivering gas to Pakistan via the Iran-Pakistan-India gas pipeline (Peace Pipeline)," he said.
 
An expert delegation from Pakistan visit ed Iran on Monday, September 29, to discuss various aspects of the project, such as the volume of gas exports, the implementation time line for the project, the point of destination and pricing.

According to ISNA, Nozari also stated that obtaining finance, acquiring pipes and constructing the pipeline, which will pass through mountainous areas, is likely to take 5-6 years.

Iran's proposed price for natural gas transported along the planned pipeline will change consistent with market price fluctuations. Tehran has already addressed concerns about the $7.4 billion Iran-Pakistan-India gas pipeline project that India had raised in the form of a non-paper.

This non-paper was handed over to the Iranian side during President Mahmoud Ahmadinejad's visit to New Delhi on April 29. Iran responded to the non-paper and its response has been conveyed to the Indian authorities.

Iran is now awaiting an expeditious response from India so that a new round of negotiations in a trilateral format, involving Iran, Pakistan and India, to finalize the project could commence at the earliest. The Indian side has said it is willing to pursue the case, but the timeframe is very important to expedite and finalize the project at the earliest. Nozari also said Iran will sell gas to Crescent Petroleum of the United Arab Emirates if the price previously agreed was raised but is building facilities so it could use the fuel at home if not.

Asked about the Crescent deal, the minister said, "If the price in this contract is corrected the export of gas will go through, otherwise the gas from the Siri region will be transferred via a 32-inch, 270-km long pipeline under construction now from Assalouyeh to the country's interior."

Siri is an offshore area of the Persian Gulf near the Salman gas field that will supply Crescent if a deal is agreed. Assalouyeh is capital of Iran's gas industry on the Persian Gulf coast.

The Crescent deal was initially signed in 2001 but hydrocarbon prices have soared since then. Pricing has also delayed a deal to build a gas pipeline to Pakistan and on to India, although testy relations between the Pakistani and Indian governments have also held up talks.