A proposed 2,600 km pipeline to be completed by 2012 from Iran to Pakistan and then on to India, which is going ahead despite strong US opposition. The project will cost $7.4 billion and will link the second largest reserves of oil in the world to the awakening economies of South-East Asia. The pipeline is to transfer 6 bcm of gas per year, half of which is destined for India and half for Pakistan. The agreement was reached after Iran agreed to reduce the price of the gas to be supplied from 85% to 78% of the price of fuel oil