Iran said on Monday that negotiations are underway to lay a $4.5 billion undersea gas pipeline to Gujarat. This was after India turned down the plan to have an on-land pipeline from Iran passing through Pakistan. The pipeline will carry 31.5 million standard cubic meters of gas per day, reported PTI.

National Iranian Gas Export Co. managing director Alireza Kameli said at the World Energy Policy Summit in New Delhi that the pipeline would be built in two years after a gas sale and purchase agreement is signed. He added that Iran was pursuing only the Iran-Pakistan section of the pipeline currently, but assured that it could be extended to India if New Delhi gave its approval.

Citing security and commercial concerns, India has not been participating in talks on the 1,036-kilometre Iran-Pakistan-India gas pipeline since 2007. However, it has never officially pulled out of the $7.6 billion project, according to PTI.