The US has told the Indian government that it is opposed to plans to build a natural gas pipeline from Iran to India through Pakistan, US Energy Secretary Samuel Bodman said in New Delhi today. “During my trip, I have made it clear at the highest levels of the Indian government that the United States opposes the development of the Iranian pipeline to India,” Bodman said in an interview with Dow Jones Newswires.

“We believe that Iran is seeking to develop nuclear weapons, and anything that will support that endeavour is something that we oppose,” Bodman said.

The New York Times reported today that the Bush administration has quietly been warning energy companies, including Shell, Repsol and SKS, the Malaysian oil company, as well as the governments of China, India, Pakistan and Malaysia, that penalties are possible if they pursue energy deals with Iran.

As a result, several huge projects planned for Iran could be vulnerable. These include one possible $10 billion project by Royal Dutch Shell and the Spanish oil company, Repsol YPF, to develop a natural gas field offshore in Iran, and a $20 billion venture by SKS Ventures of Malaysia to produce natural gas in Iran’s Golshan and Ferdows fields.

In recent months, the administration has tried to avoid diplomatic or political controversies as a result of its jawboning. But the potential for sanctions is posing a quandary for the administration by setting up a possible fight with Europe if it proceeds with them or a fight with Congress if it does not.

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