Gas pipeline project: Iran, Pakistan agree to speed up construction
Iran also offered to pay for the construction of pipeline on the Pakistani side of the project.
Pakistan agreed to purchase 1,000 megawatt of electricity from Iran as the representatives of the two countries laid emphasis on putting this project on fast track.
It was also decided to set up a joint investment fund spurring the private sector on both sides to play their part in promoting trade between the two countries.
The Iran-Pakistan pipeline, a key part of the agenda of the Joint Economic Commission (JEC) talks, was originally meant to have India as its terminal location but New Delhi has not been able to make a firm commitment on the project to date.
Iran has already built its portion of the gas pipeline up to the Pakistani border. The Pakistani portion of the pipeline is expected to cost $1.65 billion, little more than a fifth of the total $7.5 billion price tag of the whole project. The total cost may rise after the completion of a feasibility study. It is expected to begin supplying gas to Pakistan by the middle of 2014.
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@ Ali..... Some way or the other I do interact with government agencies and my interaction with them suggest that this will not happen. They do these media shows every now and often.
Gd, lets push to complete this project mean time our teams are working on how to start utilizing our own resources.
@IlovePakistan: Indeed. I like "new Pakistan".
No one will develop anything in Balochistan. We have such good chief ministers there and even if we develop it they will be asking for royalty on the gas produced. Millions of dollars have been wasted on royalty to the tribal chiefs there with zero development. Its best its imported via Balochistan from Iran. But be prepared to be black mailed by the Iranians in the long run for their interests. WE will like Ukraine :( hasan ansari
@Aryabhat: the US sanctions on Iran are unilateral (no binding on Pakistan), trading between PKR and IR will throw the dollar away. The new Pakistan is beginning to say goodbye to Saudi and US interference in its internal affairs and if we want to survive in Pakistan we have no other choice but to go for the gas from neighbours. Besides US and Saudi pressures, India too caused the delay by their confused policies and becoming latest victim to US Nuclear deal, thus added more miseries into our poor daily lives.
I'm uncertain whether Iran has the capital to actually fund Pakistan's portion of this pipeline - I am sure that Iran won't be happy when they discover just how much of that funding is going to go into the pockets of Pakistani big wigs. Given the security, capital, and graft issues I doubt this project is going anywhere.
United States Geological Survey (USGS) estimates 25 to 30 TCF of Coal Bed Methane (CBM) gas potential from Thar Coal fields. A Canadian company estimates at least 5 TCF recoverable and signed a contract with Govt of Sindh in March 2007 for exploration and production of CBM but we are not honoring the contract. The same company was engaged by USGS to conduct a gravity survey in Afghanistan in 2009 and they found the largest lithium mine in the world, 1.3 billion barrels of oil field and substantial copper and gold deposits. The Afghan Govt is floating international tenders starting from Oct 2011 and soon will be reaping benefits of their natural resources while we in Pakistan look for handouts. I happen to be a member of frustrated team trying to bring foreign investors and experts to fully utilize our natural resources.
Yeah, right!
It is difficult to pump Sui gas to Punjab and now you are dreaming about Iranian gas?
Come on, everyone knows that difficulty is 1) How to get finance and insurance for this pipeline work (no decent bank will do a single transaction which involve Iran today - in Oil sector) and 2) how ro pay for gas once pipeline (IF it) is built.
China may be able to get away with its oil and gas imports (or even India after some dithering) but a project like this pipeline will surely get you in trouble at UN and with big Daddy - USA.
But even before US or UN say anything, one phone call from big uncle - Saudi Arab will unravel this deal within days.
So keep dreaming guys! No harm in that!
@ bilal, better late than never!
Way to go, what are we waiting for? Let us build Pakistan and its civic structure so public can take a sigh of relief for a change. This is the kind of news that can change the fate of thousands of Poor Pakistanis with new jobs. More energy means more progress and less fighting.
good move
Such a shame that one of the world's largest gas reserves (900 TCF) are present across the border in Iran and we have not been able to use them to our benifit. Had our political leaders and civil service really been focused and vision orientated, Pakistan would have been a completely different place then what it is now due to energy crisis.