The gas pipeline will be inaugurated by President Asif Ali Zardari and his Iranian counterpart Mahmoud Ahmadinejad at the Pakistan-Iran border. ILLUSTRATION: JAMAL KHURSHID
ISLAMABAD:
In what appears to be a bold step and a clear snub to the United States, Islamabad and Tehran are all set to formally launch the multibillion dollar Iran-Pakistan (IP) gas pipeline project today (Monday).
The gas pipeline will be inaugurated by President Asif Ali Zardari and his Iranian counterpart Mahmoud Ahmadinejad at the Pakistan-Iran border, a foreign ministry official revealed on Sunday.
A 300-member strong Pakistani delegation led by President Zardari and comprising the country’s foreign minister, petroleum minister and National Assembly speaker and a number of prominent politicians will attend the historic ceremony.
Foreign ministry spokesperson Moazzam Ali Khan said several heads of states were also invited at the inauguration — an event that will see the two Muslim states sign a crucial yet controversial mega project aimed at easing Pakistan’s energy crisis. However, he refused to give any further details.
One official pointed out that the high-powered inauguration clearly indicated that Pakistan would pursue the project at all costs.
The US has publicly threatened to invoke economi sanctions already in place against Iran if Pakistan went ahead with its plans to import natural gas from the Islamic republic.
But Pakistan has rejected such threats insisting that its plan to import national gas from Iran is vital to meet the country’s growing energy shortages.
“There is complete consensus among the stakeholders that Pakistan must not abandon the IP gas pipeline project,” the official said.
Asking not to be named, the official maintained that it was not possible for Pakistan to pull out of the project at the behest of the US.
“While the US is not willing to give us civilian nuclear technology, they expect us to stay away from the Iran gas pipeline. This is not possible,” he argued.
The official was of the view that although Washington was assisting Pakistan in a number of energy projects, but those could not be a substitute to the option Iran was offering.
It appears that not only Washington but also certain Arab countries including Saudi Arabia are believed to be concerned about Pakistan’s plans with Iran.
In an effort to pacify their concerns, Foreign Minister Hina Rabani Khar held crucial meetings with envoys of Saudi Arabia, Qatar and the United Arab Emirates (UAE) over the last few days.
Sources said Khar’s interaction with key Arab ambassadors was meant to allay their fears and convey a message that the crippling energy crisis has compelled Pakistan to pursue the crucial pipeline.
Khar also recently travelled to Doha in a bid to assure the Qatari authorities that Pakistan’s energy cooperation with Qatar would not be affected due to the IP gas pipeline project.
Discussions between Pakistan and Iran to lay a gas pipeline first began in 1994. The two neighbours signed the initial agreement back in 1999.
The 1,600-kilometre pipeline, projected to cost around a whopping $1.2-1.5 billion, would enable the export of 21.5 million cubic meters of Iranian natural gas to Pakistan on a daily basis.
Iran has already constructed more than 900 kilometres of the pipeline on its soil.
Tehran-based Tadbir Energy Development Group will reportedly undertake all engineering procurement and construction work for the first segment of the project, which starts from the Iran-Pakistan border and costs around $250 million.
The Iranian firm will also carry out the second segment of the project, and extend the financing later to $500 million.
The remaining amount is expected to be generated through Pakistan’s Gas Infrastructure Development Cess.
Published in The Express Tribune, March 11th, 2013.
COMMENTS (26)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
IP gas pipeline agreement recently signed among Iran and Pakistan is a great move by government and a lucid prove of acumen of our president. Whether things go as per plan or not, it would not be right to view this project negatively. Our energy demand in general and natural gas in particular is growing with each passing day. For a couple of years, we have also had to face gas load shedding in winters since our gas reserves are depleting. Due to the energy crisis, we are in dire need of meeting our demand-supply gap and thus the signing of IP is a good step in the direction of building hope for a better future. All we need now is to stand by this commitment.
I hope this is not a political tactic only and I pray this project will move forward, it is lingering from the last 18 years ... What will be the security arrangments (engineers, infrastructure, etc.)????
@Virkaul: As an Indian I demand you not to worry about Pakistani projects. Pakistan will do fine and we don't require Indian approval. The IP gas pipeline project is going to be a huge success. The reason why you're throwing fits is because you cannot stand Pakistan's success. It would be much better for India to sort out their own problems instead of handing out hollow lectures. First, I would concentrate of sorting out the rape problem in India.
Well Done Mr. President; you have secured my vote for forever!!
@betle @virkaul..
Yes you are Right.
In long Term the project may be good, But every thing has its opportunity cost. and in this project this cost will directly target Our economy which is unable to meet such a big project in short term. Every economic professional knows the negative elements of this project. Iam not against Iran Pakistan Gas Pipeline, but you Should Set priorities by analyzing your Current condition. This Factor is completly droped by zradri who is only intrested in his Election Campaign.
Heck, if the US can deal with monarchies responsible for spreading religious militarism and intolerance globally for cheap oil, why can't we do trade with Iran who isnt guilty of the above?
What is the Issue with Qatar and Arab
"Khar also recently traveled to Doha in a bid to assure the Qatari authorities that Pakistan’s energy cooperation with Qatar would not be affected due to the IP gas pipeline project. Discussions between Pakistan and Iran to lay a gas pipeline first began in 1994. The two neighbours signed the initial agreement back in 1999. The 1,600-kilometre pipeline, projected to cost around a whopping $1.2-1.5 billion, would enable the export of 21.5 million cubic meters of Iranian natural gas to Pakistan on a daily basis."
All Agents here are now Feeling so much Pain in there Mind and soul for this Project.
Salute to you Mr. President.
US' supremacy and monopoly has been reached near to be ended on Pakistan......
No one can appreciate in Pakistan any good step taken by government. Ajeeb Awam
Pure election stunt and nothing else. We all very much know that our country does not have the guts, nor the capability to execute this project. Already iranians are on the upper hand, executing entire stretch and calling the shots on pricing. No international bank will ever pay money for this, China has once again kicked us out by not providing money for the project. God forbid, if sanctions are thrown on us, imagine the condition of this failed state. Also, iran is not giving this for free.. we will have to pay one way or other through increased taxes.
While US continues to block funding to Bhasha Dam through World Bank and does not offer any concessions to revive economy of Pakistan it expects us to let go of this project? Pakistan has waited long enough for some sort of trade concessions and infrastructure support but US continues to create direct and indirect obstacles to it. They can cut-off their aid if they want which has already been low during the tenure of democratic government due to USA's unwavering committment to dictatorship in Pakistan. If anything more interaction between Pakistan and Iran will help curb extremism in Pakistan and support democratic culture in Iran when they see the ruthless criticism of the government by media.
What if two years down the line, Iran and US become best buddies? Pakistan would have lost the two years then. So go ahead with the pipeline, buying gas is another step.
@ 3 commentators on top - - The world is not short of pessimists, who do not have capacity to look beyond negtivity.
@asim: if you have a gas give us to generate energy,all other promised us but gave it to India by violating all international rules on Indian terms.
good step by government... pakistan need energy at all cost. our industries are closing due to gas shortages.... US is not giving any alternative just penuts.
@asim: Better late than never. When will we take an upright stand on national priorities? When will we bring about some sentience and stability in our body of policies? Saudia, UAE, Qatar give you money and oil and the internal dissension we face today, IS IT WORTH IT? We have to start living and pull ourselves out from our present dismal state of affairs where brother is killing brother. Do you like this state of affairs? Salams
Due to shortage of Gas in Pakistan which has affected from a common man to an industrialist it has become necessary that gas should be imported from a neighboring country.
Signing Pak-Iran Gas project will provide basic frelieve to Pakistanis.
The 1,600-kilometre pipeline, projected to cost around a whopping $1.2-1.5 billion, . Last week it was $7.5 Billion - the term "credibility gap" comes to mind. The way this project has been handled makes it apparent that it's being run by publicity men on both sides of the border - long on bravado oriented to appease unhappy voters.
It is an election stunt as each of the national parties knows it is not feasible economically, politically or strategically. The price charged is much higher than what is proposed in TAPI. Volume of gas to be transported is rather small with fixed cost remaining same. Pipeline passes through Balochistan desert and will be target of militants as Baloch have not been taken into confidence. Sanctions by US will become unbearable for Pakistan to absorb, which survives on aid. Let us get real.
Only good thing done by the Zardari government!
Why should it matter to the Saudis, Qataris, and US if Pakistan is getting Gas from Iran. US energy comes in large part from their neighbor Canada. Saudis just see a market slip by. Get it done
@HADI SAKEY:
Its not a pipe dream. Its already done. Its happening now because the US did not want it to happen until Pakistan decided that we have to do it no matter what.
The project has begun.
Its not a pipe dream
The remaining amount is expected to be generated through Pakistan’s Gas Infrastructure Development Cess
And more taxes.
WHY Zardari doing it now?
Iran -Pakistan Gasline pipeline is infact pipedream. It will never materialize. Pakistan will need 1.3 billion dollars to project this pipeline upto Sindh.