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Some in India are referring to the US$4 billion project as the “peace pipeline”, as it will run through India’s historic rival Pakistan.
But the Washington Times reports the Bush administration has warned the deal contravenes the US Iran-Libya Sanctions Act, which empowers President Bush to order punitive measures against any international company investing more than US$20 million a year in Iran's energy sector.
These concerns will be raised when US Secretary of State, Condoleeza Rice makes her first visit to the region later this week and meets officials in New Delhi and Islamabad.
India, which now imports LNG from Qatar, approved the project last month as part of its quest to meet the fast-growing economy's rising energy requirements.
