Regarding transport and storage of liquefied natural gas, he said feasibility studies had been completed and a formal agreement remained to be signed. LNG imports would be through sea till negotiations for an underground pipeline through Pakistan (land route) were completed. This was also discussed at the joint economic commission in Delhi last week. If the negotiations came through it would be a "peace pipeline" through the three countries, Kharrazi added.

Iran had earmarked 6.5 billion dollars for private and foreign participation in oil and gas exploration projects. The country was ranked fifth in the world with 10 per cent of oil and 14 per cent of gas reserves.

Kharrazi listedbureaucracy, lack of transparent laws and regulations, inefficiency of the administrative system and lack of information regarding market potential, as some of the obstacles hampering trade between the two countries. He invited Indian investment in Iran's infrastructure, heavy industry, petrochemical and telecom sectors.