Blocking the IPI
Iran's nuclear shenanigans have wider repercussions for near neighbours such as India, which may find itself in a diplomatic confrontation with the US.
Asia Times Online :: South Asia news - India grapples with energy issues
A prominent US legislator, Congressman Tom Lantos, who is head of the House of Representatives' Committee on International Relations, has introduced a bill that, if passed, will ensure that India and Pakistan are not able to proceed with their gas pipeline connecting to Iran.
The legislation, the Iran Counter-Proliferation Act of 2007, seeks to target companies investing in Iran's energy sector by ensuring that deals with Iran worth more than $20 million will bring the investors under US sanctions.
According to reports, the US government has been quietly warning foreign energy companies, including Europe's Shell and Repsol and Malaysia's SKS, as well as the governments of China, India, Pakistan and Malaysia, that penalties are possible if they pursue energy deals with Iran.
Also worth noting is the concept of a 'South Asian Energy Ring':
The SAARC, for which energy is a very high priority for cooperation, comprises Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.
Key SAARC nation Pakistan has welcomed the energy-ring concept. Amanullah Khan Jadoon, minister for petroleum and natural resources, said Pakistan is a strong advocate of energy cooperation in South Asia.
