Home > Article > Beijing’s $2.5 to extend Iran Pakistan pipeline to China

Beijing’s $2.5 to extend Iran Pakistan pipeline to China


Beijing’s $2.5 to extend Iran Pakistan pipeline to China

ISLAMABAD (Online) – China has expressed keen interest in investing $2.5 billion in Pak-Iran gas pipeline project while Islamabad has also started talks with Beijing to purchase technical equipments to be used for laying down the pipeline.

According to sources within the Petroleum Ministry, China is interested to see the project is extended to its territory and a delegation would visit Pakistan in the second week of next month to discuss these matters. After inclusion of China, Pakistan would get an amount of $200 to $500 million annually as transit fee.

The sources maintained the talks were underway as Pakistan had raised no objection over inclusion of China in the gas pipeline project.

Rupee News has always supported the Iran-Pakistan-China pipeline over the Iran-Pakistan-India pipeline. Iranian Foreign Minister Manouchehr Mottaki seems to suggest that this is in the works. This development is a win-win situation for Pakistan, Iran and China.

Linking Iran, Pakistan and China via pipeline is natural process of hooking up the ECO allies with China. Expanding trade with China is a natural consequences of the deep military and economic relations between the two countries.

Exporting Iranian gas to China will aid energy starved China and help Pakistan get access to Iranian energy resources.

Pakistan should set up LNG plants in Lahore and Karachi and sell gas in cylinders in the open market as a commodity. If Delhi wants to buy the gas cylinders, it is up to Delhi. If it doesn’t, plenty of other countries will.

China should  replace India in the proposed IPI gas pipeline project as New Delhi has been dithering over the deal, a media report has said.

Iranian Foreign Minister Manouchehr Mottaki claimed that Tehran was ready to start anytime the IPI “peace pipeline” project, originally conceived to include Iran, Pakistan and India.

China will replace India in the proposed project soon as India has been dithering over the deal, Mottaki is reported to have said. All the details between Pakistan and Iran in this regard have already been finalised, according to a report in Tehran Times newspaper.

India still needed some time but “we can even start the project without India,” Mottaki was quoted as saying by the daily.

The IPI project was conceived in 1995 and after almost 13 years India finally decided to quit the project in 2008. India walked out of the 2,775 km pipeline project due mainly to the hefty transit fee demanded by Islamabad.
Mootaki blamed the US for trying to sabotage the gas pipeline project and said, “Growing relations between US and India should not affect the relations of India with other countries of the region.”

He was confident that Pakistan would not hesitate to start the gas pipeline project despite the US pressure.

“We must not allow any third country to interfere in the bilateral relations of Iran and Pakistan,” Mottaki underlined.

The proposed 2,775 km long project is dubbed the ‘Peace Pipeline’, connecting Iran, Pakistan and India. China may replace India in IPI project

Advertisements
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: