Pakistan Prime Minister Shaukat Aziz: "Dialogue to start"

The multibillion-dollar project, which would provide India with much-needed natural gas, would have to pass through Pakistani territory.

India's oil minister Mani Shankar Aiyar said he had written to his Pakistani counterpart, suggesting direct talks.

Mr Aziz has said he expected progress on the issue in the next 12 months.

"I am not saying the pipeline will be installed overnight, but the dialogue will start, at least," he told Pakistan's Daily Times newspaper.

Direct negotiations

Mr Aiyar said he would meet with Mr Aziz during the prime minister's trip to New Delhi.

"What is different is that we are going to talk to each other instead of at each other through somebody else," Mr Aiyar said.

A 2,600km (1620-mile) landline would cost about $3.5bn and the supplies would be a huge boost for energy-starved India.

India is also seeking talks with Bangladesh over another pipeline to transport gas from Burma.