Tehran, June 12 (PTI): Iran has agreed to explore possibilities of extending the 2,600-km Iran-Pakistan-India pipeline to China, Union petroleum minister Mani Shankar Aiyar said here today.

“Iran has given the green signal for embarking on a dialogue with the Chinese government on whether the pipeline could be extended,” said Aiyar, who headed the Indian delegation at the ministerial level talks with Iran on natural gas imports.

During his meeting with the Iranian oil minister, Bijan Zanganeh, Aiyar asked for 7.5 million tonnes of liquefied natural gas (LNG) from Iran, up from 5 million tonnes already agreed upon. Iran, however, refused to give price concession for the additional LNG. On the contrary, it proposed a hike.

“You will know the outcome of these discussions when the three-day ministerial talks conclude on Monday,” Aiyar said.

He indicated that the $25-billion deal for 5 million tonne per annum LNG would be signed and additional quantities, if agreed, may be included.

The two sides will ink a pact on the extra supply later if they fail to agree this time round. The import of the LNG will start from the second half of 2009-10. The agreement will be signed between a consortium of Indian firms and the National Iranian Gas Export Company, officials said.

Gail will be responsible for marketing 40 per cent of the imported LNG, Indian Oil Corporation will sell 35 per cent and Bharat Petroleum 25 per cent.