The first tripartite meeting among Iran, Pakistan and India to discuss the $4.5 gas pipeline will take place in New Delhi next month, a senior official involved in the energy talks said Friday.

"Iran has agreed to participate in the meeting of the Pakistan-India working group on gas pipeline, comprising petroleum secretaries of the two countries, in New Delhi in August," the official told.

He said that after this meeting, the oil ministers from the three countries would meet in Tehran by end-November to sign a deal for the pipeline.

The agreement for the tripartite discussion was reached in Islamabad Thursday during meetings between Iranian Oil Minister Bijan Namdar Zanganeh and his Pakistani counterpart Amanullah Khan Jadoon.

The two sides had earlier signed a memorandum of understanding to initiate work on the proposed gas pipeline with India.

"We have received a quick response from India about Iran's inclusion in the New Delhi meeting. They have agreed to it," said the official.

He said India and Iran had already discussed the matter when Indian Petroleum Minister Mani Shankar Aiyar visited Tehran last month.

Though Pakistan and India have been discussing the pipeline issue with Iran, the meeting in New Delhi would be the first ever where all the three countries would be discussing the issue together.

An official said reports of major gas discoveries in India would not affect the project, since the reports were of preliminary nature and the potential cannot be confirmed unless detailed data analysis and studies were completed.

Some reports in the Indian had suggested that New Delhi might give second thought to the project because of two discoveries are preliminarily estimated at 20 trillion and 14 trillion cubic feet of gas reserves.

India had shown interest last month to take part in three proposed pipeline projects - one each from Turkmenistan, Iran and Qatar - for multiplying the sources of supplies instead of looking at them as alternative options.

Pakistan and India had agreed that all the three projects would have to be completed as energy needs in the two countries expand with economic growth.

India, Pakistan and Iran are expected to exchange information regarding the financial, technical, commercial and legal issues and other matters when they meet in August.

The Iranian oil minister had said Thursday that work on the proposed gas pipeline would start after April 2006 after the paperwork is completed.

"The dream of exporting gas to Pakistan and India is finally going to be a reality after a 10 year period," Zangeneh had said.

He called the pipeline a regional symbol of peace and stability, adding both countries have an action plan and Iran would be able to ink the final contract with Pakistan by April.

He said both countries had agreed that technical issues should be resolved in the remaining 10 months.

The Iranian minister said his country had increased its supply of oil by 500,000 barrels a day to stabilise oil prices.

He, however, added that the cost of refining crude oil had increased because of which oil prices were increasing worldwide.

Meanwhile, a Pakistani official working with the petroleum ministry said the country's Petroleum Secretary Ahmad Waqar would visit India Monday to hold talks on the project.

According to officials, Islamabad would go for the gas pipeline from Iran even if New Delhi decided to pull out as Pakistan would experience gas shortages from 2010.

Under the pact signed between Iran and Pakistan Thursday, Tehran would provide its term sheet to Pakistan in two months, detailing the price, quality and quantity of gas.

Pakistani experts would examine the terms sheet and then negotiate with Iran. The final agreement is likely to be signed after the negotiations.