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Posts Tagged ‘pipeline’

Pakistan to go ahead with Iran gas deal

Pakistan has brushed aside the unilateral US sanctions against Iran, saying it will go ahead with the Iran-Pakistan gas pipeline project as planned.

“We could start the project as soon as possible to meet the energy crisis which the country faces,” a Press TV correspondent reported Pakistan’s Foreign Ministry spokesman Abdul Basit as saying on Wednesday.

Basit added that measures were underway by the Pakistani government to start implementing the multi-billion-dollar contract on the import of natural gas from Iran in 2014.

The comments come days after Pakistani Foreign Minister Shah Mehmood Qureshi announced the sealing of a deal between Islamabad and Tehran in view of Pakistan’s growing energy needs.

“This agreement is in the interest of Pakistan and it will only see its interests and the international laws…… the Iran-Pakistan gas pipeline agreement will not come under the ambit of the sanctions on Tehran,” Qureshi said on Monday.

Earlier in the week, the US special envoy to Pakistan, Richard Holbrooke, warned Pakistan not to “over-commit” itself to the deal as it comes in violation of new US-adopted sanctions against the Islamic Republic which target the Iranian energy sector.

Iran, however, has completed the construction of more than a third of the 2,600-kilometer gas pipeline, which is estimated to cost $7 billion.

Under the deal, Iran will supply its southeastern neighbor with 760 million cubic feet (21.5 million cubic meters) of gas per day, which amounts to 20 percent of the recipient’s demands.

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.

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.”