Dubai: The proposed tri-nation IPI gas pipeline has received a boost with Pakistan and Iran reportedly reaching an agreement on pricing structure.

Iran Oil Minister Kazem Vaziri Hamaneh has said that Iran and Pakistan reached agreement on the final sale price of the gas to be transferred through the pipeline that is to be built from Iran to India through Pakistan.

"Trilateral talks on the gas price and pricing formula proposed by the consulting company in charge were held recently in Tehran with participation of officials from India and Pakistan as well as representative of Iran's Oil Ministry," the Minister said to sources.

  "The Peace Pipeline should also be discussed by Pakistan and India, given that it will cross through both countries," he said.

 "The Indian officials said that the proposed gas price cannot be finalized, unless the issue is negotiated between India and Pakistan," he said.

  No further details were given about the agreement between Tehran and Islamabad.

Pakistan President Pervez Musharraf, who reached Tehran yesterday, expressed pleasure over an agreement between Tehran and Islamabad on price coding for Iran's natural gas.

Musharraf said he hoped that in the near future, operations would be launched for laying the Iran-Pakistan- India gas pipeline, the so-called' Peace Pipeline Project'.

The pipeline project and energy cooperation will be high on Foreign Minister Pranab Mukherjee's agenda during his two-day visit to Iran from today, his first official trip outside South Asia since taking office in May.

India and Iran are expected to discuss two multi-billion dollar gas deals including a pipeline that would cross Pakistan to help meet demand in India.