Iran, Pakistan sign gas export deal - media

TEHRAN (Reuters) - Iran and Pakistan signed a framework agreement on Sunday to export Iranian natural gas to the neighbouring country during a visit by Pakistani President Asif Ali Zardari to Tehran, Iranian news agencies reported.

India had been part of the $7 billion so-called "peace pipeline" project, but stayed away from talks in September saying it wanted to agree transit costs through Pakistan on a bilateral basis first.

Iran and Pakistan had agreed on a revised price formula and a new price review mechanism in December which updated terms reached in 2006 during long-running negotiations on the project

Iranian media had reported the two sides started a fresh round of talks in Tehran on Friday, quoting one Iranian official as saying a date would be set to finalise the deal during the two-day talks.

Sunday's reports by the Fars News Agency and the Oil Ministy website SHANA did not make clear whether issues remained outstanding before the deal could be finalised.

Iran, which sits on the world's second-biggest gas reserves, imports roughly about as much gas as it exports. U.S. sanctions have been a factor hindering Tehran's export plans, which tries to become a major gas exporter.

An Iranian Oil Ministry official has said he hoped that the commencement of gas delivery would start five years after the contract was signed, adding both Iran and Pakistan would welcome India if it decided to join the project.