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Iran and Pakistan sign gas export agreement

Iran and Pakistan formally signed yesterday an export deal which commits the Islamic republic to supplying its eastern neighbour with natural gas from 2014.

The contract is the latest step in completing a multi-billion dollar gas pipeline between Iran and Pakistan within the next four years.

“This is a happy day,” Iran’s Deputy Oil Minister Javad Ouji told reporters at the contract signing ceremony in Tehran. “After decades of negotiations, we are witnessing today the execution of the agreement… to export more than 21 million cubic metres of natural gas daily from 2014 to Pakistan,” he added.

He said that from today, Iran will start building the next 300-kilometre leg of the pipeline from the southeastern city of Iranshahr to the Pakistani border, through the Iranian port of Chabahar.

Iran has already constructed 907km of the pipeline between Asalooyeh, in southern Iran, and Iranshahr, which will carry natural gas from Iran’s giant South Pars field. Pakistan’s Deputy Energy Minister Kamran Lashari, who was present at the signing ceremony, said Islamabad will conduct a one-year feasibility study for building its section of the pipeline.

It will then “take three years for constructing the 700km pipeline” from the Iranian border to the Pakistani city of Nawabshah, he added. The pipeline was originally planned between Iran, Pakistan and India, but the latter pulled out of the project last year. Pakistan plans to use the gas for its power sector.

Turkish Navy to escort next flotilla: PM Erdogan on board

Turkish Navy to escort next flotilla: PM Erdogan on board

ANKARA: Turkish Prime Minister Recep Tayyip Erdogan was considering sailing to the Gaza Strip as part of an aid flotilla backed by the Turkish Navy.

Lebanese newspaper al Mustaqbal quoted security sources as saying that Mr Erdogan was pondering the move in order to break the barrier imposed against Gaza by Israel.

It said that “as part of the open conflict between Turkey and Israel following the massacre against the ‘freedom sail’ to Gaza and the protest sparked in the world, Turkish Prime Minister Erdogan is considering going to Gaza himself in order to break the blockade imposed on the Strip.”

The sources said Erdogan raised the option in discussions with associates.

The report added that the Turkish leader also told the U.S. that he planned to ask his navy to escort another aid flotilla – but officials in Washington asked him to delay the plan in order to look into the matter.

The move followed strong criticism of Israel by Erdogan after Israeli armed forces killed several people on board an aid flotilla Monday, sparking widespread international condemnation.

When the possibility of Erdogan joining a flotilla was posed to Mark Regev, the spokesman for the Israeli prime minister, he said such a move was not a “realistic scenario” and dismissed it outright.

“Some of these reports must be taken with a grain of salt … I am not sure that is a realistic scenario,” he told Sky News.

“I prefer that we sort these things out peacefully. Nobody wants any saber-rattling. It does not do any good,” said Regev.

India left out. Iran and Pakistan ink $7.5 billion Pipeline deal

India left out. Iran and Pakistan ink $7.5 billion Pipeline deal

ISLAMABAD — Pakistan and Iran on Friday signed a “sovereign guarantee” agreement paving the way for the completion of a 7.5-billion-dollar gas pipeline project within the next four years.

The 900-kilometre (560-mile) pipeline will be between Asalooyeh, in southern Iran, and Iranshahr, near the border with Pakistan, and will carry natural gas from Iran’s South Pars field.

Pakistan petroleum minister Syed Naveed Qamar told reporters after a signing ceremony in Islamabad that originally the pipeline was planned between Iran, Pakistan and India, but the latter withdrew from the project last year.
“I am extremely pleased that after 17 long years this project is finally starting. It would help us generate energy for our industrial growth,” Qamar said of the Gas Sale and Purchase Agreement (GSPA) between the two countries.
Qamar added that “Iran had assured us that they would complete the project between two-and-half to three years, ahead of schedule.”

The imported natural gas — whose volume is estimated at nearly 20 percent of Pakistan?s current gas production — will be dedicated to the power sector.

Electricity generation through gas would result in “significant” annual savings when compared with other fuels, a petroleum ministry statement said.

Supply is contracted for a period of 25 years, the statement said, renewable for another five years.
“While all other CPs (Conditions Precedent) of the GSPA are completed, the project is now ready to enter into its implementation phase,” the ministry statement said.

“As per current project implementation schedule, the first gas flow is targeted by end 2014.
“The capital cost for the Pakistan section is estimated at 1.65 billion dollars.”