Iran, Pakistan and India plan to start laying a seven-billion U.S. dollar gas pipeline by September 2009 on a segmented basis, the DAWN newspaper quoting a senior official reported Friday.

Each country will build the pipeline in its territory and Iran "has already started laying pipeline" to serve its eastern areas that would be extended by about 200 km to Pakistan border, an unnamed official in Pakistan's petroleum ministry was quoted as saying.

Accordingly, a tentative schedule for the pipeline's implementation had also been agreed upon, envisaging completion of the project between June-September in 2014.

Pakistan would build the 655-km pipeline in its territory through private sector on "build, own, operate and transfer" (BOOT) basis, adding that a lead sponsor would be appointed immediately after signing the gas sales and purchase agreement with the National Iranian Gas Company (NIGC) by June 2007, the official told DAWN.

Based on steel cost of 960 dollars per ton, the 1,092-km Iranian segment would cost 3.99 billion dollars, while 2.64 billion dollars would be needed for the 655-km segment in Pakistan and the 344-km-long Indian segment would cost 600 million dollars, according to the report.

The construction Pakistan part of the pipeline is expected to start in September 2009 and complete in September 2011, and the first flow of gas is expected in June 2014, said the report.

Source: Xinhua