Iran won’t suspend gas export to Pakistan: Oil minister
According to IRNA news agency, the minister said, the country (Iran) was ready to begin gas export to Islamabad.
“Iran has almost completed the establishment of the IP pipeline in its territory and is ready to export gas to Pakistan as soon as the country builds its own section of the pipeline,” he said.
The oil minister noted that Iran’s gas output during March 21-November 21 has increased by 100MCM year-on-year and amounted to more than 600MCM per day.
Earlier, Zanganeh had said that Iran is committed to its gas contract with Pakistan, urging the country to show the same commitment.
Islamabad will initially receive 20MCM of gas per day after completing the remaining section of the Iran-Pakistan pipeline in its territory.
The gas contract signed between Tehran and Islamabad requires the Pakistani government to pay $3 million worth of compensation to Iran for each day of delay as of the beginning of 2015.
Following the Iranian Oil Ministry’s ultimatums to Pakistan demanding the country complete the project on time, Pakistani Minister of Petroleum and Natural Resources Shahid Khaqan Abbasi travelled to Iran last week to extend the deadline.
Earlier, Ali Majedi, a deputy oil minister, said Iran has spent $2 billion on the establishment of the pipeline and will invest another $1 billion to complete the project.
Majedi noted that even if the Pakistani government were to appoint the project’s contractor right now, it would only be able to complete the project in about four years.
Published in The Express Tribune, November 27th, 2014.
COMMENTS (5)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
We have read numerous articles on ET and other Pakistan newspapers that Iranian section of IP was completed long ago - well before the showcase signing of the agreement. Now we hear the Iranian portion of the pipeline is "almost" completed. What's up with that?
Persian Govt has spent $2 billion on the establishment of the pipeline and will invest another $1 billion to complete the project as they are working on it day and night.On the contrary on Pakistan side nothing has started as yet !!!!! Pakistani government has to appoint the project’s contractor right now as none is there in sight as all contractors are scared for money and life , then only Pakistan govt be able to complete the project in about four years if all goes well as planned but doubtful and due to the contract claws Pakistani government has to pay $3 million worth of compensation to Persia for each day of delay as of the beginning of 2015.
@Kamal:
Nope, not a dime.
Pakistan Government has been making commercial decisions through foreign office, be it awarding of Neelum Jhelum to China or selling of state owned PTCL to Abu Dhabi - Saudi Arabia will not be able to help Pakistan if they are into trouble themselves and which they are - Pakistanis cannot be deprived of progress for just pleasing US and Saudi Arabia.
Does that mean Pakistan will have to pay $3M per day starting from 2015?