Pak-Iran gas pipeline project formally signed

admin — Sat, 06 Jun 2009 03:56:41 +0000

ANKARA: The gas pipeline project between neighboring Pakistan and Iran has been formally signed here late on Friday, Geo news reported. The agreement was signed between Iranian National Oil Company (INOC) and Pakistani Interstate Gas Company (PIGC). The Managing Director (MD) of PIGC Hassan Nawab told Geo news the agreement is governed through third country law so it was bound to be signed in a third country and has been signed here in Turkey. He said the work on the project has commenced from today (Friday) and will be completed by 2013 whereby Pakistan will receive 750 cubic million gas on daily basis which will be enough for generation of 4000 megawatt electricity. “The gas pipeline will begin from Gawadar near Iranian border having 800 kilometer length”, he maintained adding, “The determination of gas price will be linked with contemporary oil prices at international market but will be less than 25 per cent as compared to crude oil prices”. The estimated cost of the project will be US $1.2 billion, he added.

Pakistan Iran signed Peace Pipeline Deal

admin — Mon, 25 May 2009 19:06:55 +0000

ISLAMABAD – After fifteen years of negotiations over the Iran-Pakistan-India (IPI) gas pipeline project, Pakistan and Iran have finally signed the initial agreement in Tehran on Sunday.

The project termed as ‘Peace Pipeline’ by the officials of both the countries has been inked by President Zardari and his Iranian counterpart Mahmoud Ahmedinejad on the sidelines of the tripartite summit on Afghanistan security.

However, sources said that negotiations were underway between Iranian and the Pakistani delegations on the issue of gas price.Iranian media had reported the two sides started a fresh round of talks in Tehran on Friday, quoting one Iranian official as saying a date would be set to finalize the deal during the two-day talks.

Pakistani delegation negotiating the project is led by Advisor to the Prime Minister on Petroleum Dr Asim Hussain, accompanied by the officials of Petroleum Ministry and the technical team being headed the Managing Director Inter State Gas Systems (ISGC) Syed Hasan Nawab. The ISGS is a semiautonomous body looking after Pakistan’s interests in the international gas pipeline projects to import gas from Iran and Turkmenistan. The federal cabinet agreed to allow the import of one billion cubic feet gas at the rate of 80 per cent of the price of crude oil.

“The gas sales purchase agreement with Iran will be signed in the next phase,” a member of the delegation told. Official sources said that soon after signing of the gas sales purchase agreement, work would start at the designing of the project.

“Pakistan has already appointed a German designer firm ILF for the pipeline”, Petroleum Ministry sources said, adding that the pipeline would enter Pakistan from its border near Gwader area to Nawabshah, which is the hub of gas pipelines in the country.
India had been part of the $7 billion ‘peace pipeline’ project, but stayed away from talks in September last saying it wanted to agree transit costs through Pakistan on a bilateral basis first. The IPI project was conceived in 1995 and India finally decided to quit the project in 2008, after almost 13 years, despite severe energy crisis in that country, while Pakistan is too facing severe criticism from the US over any kind of economic deal with Iran.

Stock Exchange Pakistan » gas pipeline project

Pak-Iran gas pipeline project formally signed

Pakistan Iran signed Peace Pipeline Deal