August 17, 2010 1:02 PM

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Govt reaches 25-year agreement with Qatar for gas supply

The Government has reached an agreement with Qatar for gas supply to meet growing energy demand. A 25-year agreement has been signed with Doha and the supply is likely to start soon. Replying to questions in the Rajya Sabha today, the Minister of State for Petroleum and Natural Gas, Mr. Jitin Prasad dismissed reports that Iran-Pakistan-India (IPI) pipeline gas project has been abandoned. He, however, informed the house that the security concerns of the proposed pipeline, pricing and transportation cost has to be negotiated as three countries are involved in the project. The Minister rejected the opposition criticism that the pipeline project is being wound up under US pressure. He said that New Delhi is pursuing the import of natural gas from Iran in the interest to enhance energy security in the country. Mr Prasad said that the government is holding discussions with many other countries to get more gas. The Minister said that 70 Million Metric Standard Cubic Meter Per Day (MMSCMD) gas is being supplied to power plants as against the demand of 580 MMSCMD.

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