China has reportedly conveyed to Pakistan that in the event of India backing out of the IPI gas project – the proposed multi-billion dollar, 2,700-kilometre gas pipeline originally intended to link Iran, Pakistan and India – it would be willing to import 1.05 billion cubic feet (bcf) of gas per day. Both the Pakistani and the Iranian Foreign ministry spokespersons have reiterated the growing Chinese interest in the pipeline project. The Indian reaction to this development has been lukewarm. The prevailing belief in the Indian establishment is that China is unlikely to the pay the gas prices being demanded by Iran. While addressing the Indian Parliament recently, Indian Petroleum Minister Murli Deora stated, "No official communication has been received regarding China joining the IPI gas pipeline project. Such multilateral projects involve protracted discussions as all the aspects have to be carefully examined1."

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