India Seeks Payment Guarantees from Pakistan Before Signing Gas Deal

India wants sovereign payment guarantees from Pakistan before it signs a gas export contract, reports Press Trust of India (PTI).

GAIL India is slated to supply gas at 5 million standard cubic metres per day to Pakistan through a 110-km pipeline from Jalandhar to the international border near Attari.

India wants payment guarantees from Pakistan before the state owned firm enters into a contract, says PTI.

Five rounds of negotiations have been held between the two sides and it has been found technically feasible to export gas from Punjab into Lahore, the news agency adds.

Pakistan wants to import gas from India to meet its rising energy deficit. Initially, it wants to take 1-1.5 million tonnes of LNG (5 mmscmd).

Sources told PTI that pipeline exports to Pakistan are being looked upon as mode for testing viability of an energy pact with the neighbouring nation as a precursor to India importing gas through TAPI pipeline.

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