Zardari to finalise gas pipeline deal in Tehran

President to leave for Iran tomorrow to sign agreement.


Kamran Yousaf February 24, 2013
Not only would President Zardari sign a deal on the I-P project, Iran will also set up an oil refinery in Gwadar, Balochistan. PHOTO: FILE

ISLAMABAD:


Despite mounting US pressure, President Asif Ali Zardari has decided to travel to Tehran this week to finalise a multibillion dollar gas pipeline deal, officials revealed on Sunday.


Under the agreement, Iran would offer a loan of $500 million to Pakistan for the construction of a gas pipeline on its side of the border. However, the project has run into trouble due to an absence of investors fearing economic sanctions by the United States.

A foreign ministry official confirmed to The Express Tribune that President Zardari will begin a two-day visit to Iran on Tuesday to finalise the much-anticipated deal.



The official, requesting anonymity, disclosed that Washington was pushing hard to convince Islamabad to abandon the project.

“But we feel that the project is important for our future energy needs and we will pursue it at all costs,” he added.

Meanwhile, at his weekly briefing on Thursday, the foreign ministry spokesperson rejected reports of US pressure insisting that the Iran-Pakistan (I-P) gas pipeline project was “enormously important” for Pakistan.

“We are an energy deficient country. It is in our national interest to have this project,” Moazzam Ali Khan asserted.

Not only would President Zardari sign a deal on the I-P project, Iran will also set up an oil refinery in Gwadar, Balochistan, it was revealed.

And both the formal  agreements would be inked between leaders of the two countries during the president’s upcoming visit to Tehran.

The $4 billion refinery is slated to be constructed in the port city of Gwadar with an estimated capacity of about 400,000 barrels per day.

The proposed cooperation between Islamabad and Tehran is likely to invite more pressure from Washington, sources say.

The US State Department said on Saturday that there were better options available for Pakistan than the I-P project to meet the country’s growing energy demands.

But, Pakistan so far resisted the pressure and has decided to go ahead with the project.

Last week, the Iranian oil minister visited Islamabad and said Tehran would start supplying natural gas to Pakistan by December 2014.

Published in The Express Tribune, February 25th, 2013.

COMMENTS (36)

sultan ahmed | 11 years ago | Reply

Picture of the region is getting change. Nuclear armed states is coming closer to each other. Two impoprtant countries of the region going to ink an agreement. Conciliation efforts are already under way between government of Pakistan and taliban hope would successful. United States and coliation Nato forces stationed in Afghanistan for more than decade is expected withdrawal in 2014 hope would never come back to. So in the whole scenario agreement with iran on the gas pipeline is good steps Pakistani leadership put aside American influence and has taken a firm decision to ink agreement with Iran no doubt is a brave step.

G. Din | 11 years ago | Reply

@Ali Asghar: "Gawadar port and IP0 pipeline projects are for Pakistan and mainly for stabilizing Balochistan. " From all indications, Buloch beg to differ. Both projects will be sitting ducks in their cross-hairs!

VIEW MORE COMMENTS
Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ