"There is absolutely no chance to abandon the pipeline project, because we need it," Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi, said on Geo TV on Thursday. PHOTO: AFP/FILE
The $7.5-billion project, aimed at easing Pakistan's chronic gas and electricity shortages, has drawn threats of US sanctions and run into repeated problems.
The Iranian side is almost complete but Pakistan has struggled to find the money to pay for the 780-kilometre (485-mile) section to be built on its side of the border.
Earlier this month Islamabad asked Tehran to stump up $2 billion to finish construction.
Iranian Oil Minister Bijan Zanganeh said Wednesday there was no hope of exporting gas to Pakistan because the financing was not there.
But his Pakistani counterpart insisted the project would be completed.
"There is absolutely no chance to abandon the pipeline project, because we need it," Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi, said on Geo TV on Thursday.
Meanwhile, foreign ministry spokesperson told reporters during a weekly briefing that Pakistan was "committed to all options" to tackle energy shortages, which cause long blackouts in the summer and problems with gas supply in the winter.
Iran currently produces around 600 million cubic metres (21.2 billion cubic feet) of gas per day, almost all of which is consumed domestically. Its only foreign client is Turkey, which buys about 30 million cubic metres per day.
With the economy and government finances in a poor state, if Iran will not pay to complete the pipeline it is unclear where Pakistan could find the money it needs.
Investors and other governments are reluctant to get involved in the project because of the threat of breaching international sanctions on Iran.
Last week the Sustainable Development Policy Institute, an Islamabad think-tank, warned that under the current terms of the deal Pakistan would pay an exorbitant price for Iranian gas.
Arshad Abbasi, an energy specialist at the institute, voiced surprise at the Iranian minister's comments and said he thought it was likely a bargaining gambit as Tehran seeks to stop Pakistan negotiating a lower price.
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@Bakhtiyar Ghazi Khan: So, you think that other than straight from your mind, there is actually a factual basis for your statement that "... Pakistan is on an upwards trajectory.". Kindly share that factual basis...that will make everybody shut up.
This is proof Indians should not comment on Pakistan. It is no use replying to these people who bring their statements straight from their minds without any factual basis.
Whether you guys like it or not, in sha Allah, Pakistan is on an upwards trajectory. May God bless Pakistan for years to come. Ameen.
@Raj - USA: Raj, seriously grow up and get a job. Your comments are a creation of your mind and it seems like they have some medicinal affect on your brain!
You don't just sign a contract, make a country build a pipeline to your border and then say oops. That contract has more conditions which will start putting Pakistan on the hook for expenses anyway. You will build the pipeline or you will owe Iran its costs thus far and then some. In the meantime, it is a really credibility problem for Pakistan while Iran has shown work done efficiently and in good faith with respect to its contractual agreements.
Right from the time this project was conceived, starting from the time when it was IPI, no government in Pakistan, be it Musharaff's or PPP or PML-N, had any interest in this project. After all, Pakistan has not been able to sell even one rupee worth of products (be it rice or wheat or mangos) to Iran under the currency swap deal for several billions of rupees (I believe it was 100 billion rupees) signed by the two over three years ago. Iran also does not want to sell fertilizer or iron ore to Pakistan under the currency swap deal. Only common factor that both countries have is their enmity of USA and Israel. Successive governments in Pakistan have been fooling their own citizens.
One tends to agree with the Pakistan statement that the Pak-Iran gas pipeline project is not "dead". But it certainly is in a state of "non-reversible coma."
Lies, lies and more lies. The entire political mechanism, the current one and the earlier one, do nothing more than buy time. The Minister knows very well that 'wada badmaash' will put us in our place the day you open the spigot. Just lies and more lies for the 'Awam' (i.e. the 80% illterate) who poor fellows don't really care about such high sounding statements. They are too busy meeting their ends meet. So fooling, keep in fooling.
@Hindi Al Benga Luru Al Karn Ataka: I was saying what Nawaz Sharif said when he gave away / sold off Gwadar to China. Pakistan government also presented in its plans the Gwadar-Khushab-Kashghar Railway project to be funded by China. This railway line is supposed to transport goods to China over the mountainous region at an altitude of 17,500 feet. They also presented the $4 billion oil refinery project in Gwadar to be funded by Iran. Earlier we had heard of the $45 billion township development project sighed by Malik Riaz where an entire island that will have its own water supply and power generation will be developed.
Its high time for Iran to penalize pakistan for there non commitment.
"Arshad Abbasi, an energy specialist at the institute, voiced surprise at the Iranian minister’s comments and said he thought it was likely a bargaining gambit as Tehran seeks to stop Pakistan negotiating a lower price. "
What a joke. Pakistan has not lifted a finger to sign contract to build the pipeline or arrange fnds for it and constant comments about how Pakistan would be impacted by sanctions if and when the pipeline is built and gas is ready to flow. Yet the energy specialist is surprised at the Iranian Minister's statement?
Also I am not sure you understand what a contract is. When your President went to Iran to sign the IP pipeline contract it included the price. The fact that before doing any work to make the pipeline operational while Iran has already built its part, you have already started to discuss the price shows Pakistan's lack of sincerity.
Pakistan is just using this pipeline as a tool to negotiate more aid from Saudi Arabia and USA. IT has no intent of ever building the pipeline.
@Raj - USA: You are missing one point. If China ever needed gas desperately, would it rather not build a Turkmenistan-Tajikistan-China pipeline rather than the non-starter IP-C-pipeline? After all, the Galkynysh gas field in Turkmenistan is the world's second biggest gas field.
@Bakhtiyar Ghazi Khan: "Pakistan has to get natural gas from somewhere, and Iran seems like the obvious choice." Making choice is for those who can afford to chose. Penitent beggars cannot be choosers, hence they are "saved" from making choices.
Your headline is revealing -- "no chance" gas pipeline.
@Bakhtiyar Ghazi Khan:
Sectarianism is not the issue in IP pipeline. I agree. Also, don't say the previous government was shia dominated because Zardari was the co-chairman of PPP and also President of Pakistan. Zardari is a practical muslim and not a practicing muslim. He personally does not have any religious tilt. IP pipeline failed because of Pakistan only. When it was IPI, Pakistan refused to provide guarantee for its security. Pakistan also refused to provide guarantee to India that it shall not shut off gas supplies to India in case of any conflict with India. At that time Iran had offered a price of $6.5 / mmbtu for gas which price has now doubled to $13 / mmbtu. Also, Pakistan would have earned transit fee also from India. Because of Pakistan's attitude, Pakistan lost its revenue from India and also that the price of gas has doubled. Iran is also not happy as it lost substantial revenue by the 10 year delay caused by Pakistan. When it was IPI, there were no sanctions and all countries, Iran, Pakistan and India included would have benefitted. Pakistan dug its own grave and took Iran along with it. India still buys oil from Iran and in the future may buy LNG from Iran also that Iran via Iran's Chabahar port. China also buys oil from Iran. If China had trusted Pakistan, they would have financed or even laid the entire pipeline and extended it to China also. I read recently in ET that Pakistan has not paid the Polish companies also for gas.
Anyhow, I have posed a question for you to in another section of ET. This is in reply to your comment on Pakistani movie "Ram Chand Pakistani". Here is the link and read my last question posted just minutes ago. http://tribune.com.pk/story/623626/oh-look-a-pakistani-hindu/
@Bakhtiyar Ghazi Khan: "Pakistan has to get natural gas from somewhere, and Iran seems like the obvious choice."
Pakistan is not entitled to natural gas. It has to pay for it. It is unwilling to pay Iran the rate it is asking. It refuses to build the pipeline and claims it has no money to build it.
India cannot prevent Iran from selling gas to Pakistan. The barrier is Pakistan's financial difficulties which are self created and have little to do with India.
No 500 large (Million $, not rupee) to fund the pipeline. On the other hand, someone is building a gigantic statue for the same price across the border.
@Raj - USA: I always laugh when Indians comment on the affairs of Muslim nations. Considering Pakistan just had a Shia dominated government for 5 years, sectarianism isn't the problem. The US, along with its Gulf puppets, are putting pressure on Pakistan, China, and Russia to stay away from the project, and I am sure India is attempting to pressure Iran away from it as well.
Pakistan has to get natural gas from somewhere, and Iran seems like the obvious choice.
Did Pakistan was ever sincere in the gas pipeline,continued pursuing Iran to complete his part of the project and by designed never ever spoke on price and signed contract decade back and trying to remain innocent and now through others and write ups raising price issue.Right from day one it was Shia gas and it will remain so.
Abbasi ! Wazir Sahib, if its money - Mayaa problem to build the line. Pakistan can raise money for this pipe line. Unless if Wahabis are more "HEAVY" than our Shia neighbors. Janab Wazir Sahib, I pray to KHUDA to enlighten us.
Nawaz Sharif Al-Saud will not allow the pipeline to be constructed, no point in harbouring delusions.
@ ET: There is a problem with the lead. There is a repetition of, "it was," in the second line and and additional, "h," after ahead.
The Iranian Minister's statement is not a statement on the IP pipeline. It is a signal that Iran is changing its position on Pakistan and shall no longer be patient be it in Pakistan's support for talibans or persecuting shias. Iran is now trying to improve its relationship with US and if this improves, Iran will shun Pakistan. China probably knows this and so has refused to finance this pipeline though it has been touted that China itself will be an end user of the gas from Iran.
Lol. Iran offered to construct Pakistan's portion of the pipeline, but these fools refused. They just wanted Iran to give them money. Glad Iran was wise enough to walk away.
Where is the MONEY ???
Pakistan has no money and this is why Pakistan requested Iran to fund the Pakistani side of pipeline some time back. People will believe Pakistani minister or Iran who is supposed to fund the pipeline?
Yep - Pakistan will never drop the idea of an IP - all it's waiting for is for someone else to pay for the pipeline - build the pipeline - manage the pipeline and pay for the gas.