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Iran hints at legal action against Pakistan over delayed gas pipeline

INDIAPOSITIVE

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SOURCE: PRESS TV



A senior Iranian official has said that Tehran will take action should Pakistan fail to meet its obligations with regard to the construction of a pipeline for receiving Iran’s natural gas.“Iran has taken plenty of measures with regard to gas exports to Pakistan and has already laid out a major part of the pipelines as far as the Pakistani borders,” Ali-Reza Kameli, CEO of National Iranian Gas Exports Company, said.

“It would be natural that every country would think about the interests of its own people. Therefore, if Pakistan’s action harms our interests we will definitely act in line with terms of the contract,” Iranian petroleum ministry’s official monthly Iran Petroleum quoted Kameli as saying.

He complained that Pakistan has not taken “any specific action with regard to the construction of 780 kilometers of gas pipeline on its soil under the pretext of sanctions on Iran.”

“Therefore, the project has been held in abeyance…In every contract, penalties are envisaged for non-compliance with obligations, but Iran does not like to enter the phase of penalties vis-à-vis its neighboring country with which it has friendly ties,” said Kameli.

Iran plans to deliver 21.5 mcm/d of gas to Pakistan.

Iran looks on course to emerge from sanctions under a July 2015 nuclear deal.

Pakistan hesitant

However, Islamabad was dragging its feet even before the West imposed new sanctions on Tehran in 2012.

The US has long pressed Pakistani officials against going for the pipeline, promoting Turkmen over Iranian natural gas even though the route requires the extra mile of more than 700 km across volatile regions in Afghanistan.

The energy crisis in Pakistan which suffers about 12 hours of power cuts a day has worsened in recent years amid 4,000 megawatts of electricity shortfall.

Iran has completed its part of the gas pipeline project with more than $2 billion of investment but Pakistan has fallen behind the target to take gas deliveries in the winter of 2014.

Contractually, Pakistan has to pay steep fines to Iran for failing to build and operate its section of the pipeline by the winter of 2014.
 

KN-1

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This pipeline was thousand time better then TAPI... no reliance on any third country, and would take much shorter time to build due to less distance...
 

Pandora

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This pipeline was thousand time better then TAPI... no reliance on any third country, and would take much shorter time to build due to less distance...
TAPI is much cheaper than Iranian gas. Iran has put fare at a ridiculous price.
 

somebozo

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This pipeline was thousand time better then TAPI... no reliance on any third country, and would take much shorter time to build due to less distance...
Iranians are unreliablie and by linking up your energy needs with them you are giving them a tap on your foreign policy...Something which would be very much a disaster for Pakistan...but this is more than a year old news..so work on pipe line has already started..rest assured we are paying Iranians for the gas..its not free..so customer first.or GTFO..
 

cb4

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This pipeline was thousand time better then TAPI... no reliance on any third country, and would take much shorter time to build due to less distance...
Who said? Plz explain how much iranian were asking vs Tapi?
Besides the political issues i.e. Arab pressure and Sanctions imposed by the West, the gas price that we were being offered from Iran was expensive and such agreement was in the Zardari tenure.

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The TAPI pipeline will bring 3.2 billion Cubic Feet Gas per Day (BCFD) of gas to Afghanistan, Pakistan and India and with the current prices of Brent oil, Pakistan will get a rate of $5.7-6.2 per MMBTU,

Work on TAPI pipeline’s Pak segment to start in 2017

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We have an agreement with Iran that we will buy gas for $15/ MMBTU. However, Turkmenistan is supplying gas to Japan at a rate of $4/ MMBTU,” he said.

Iran gas pipeline not in favour of Pakistan: report - Newspaper - DAWN.COM
 
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Sugarcane

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Pakistan should invest on LNG infrastructure, so that we can buy it from where ever we want instead of becoming hostage.
 
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cb4

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Even Russia is offering cheaper gas than what Iran is offering, though it hasn't been finalized yet and there is room for more negotiations
 

Pandora

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Who said? Plz explain how much iranian were asking vs Tapi?
You check later but its an old news now. Iran fixed price at nearly 11-12 dollars whereas TAPI was 8-9 dollars. Its nothing new i read about it cople of years back. Also Gas price from iron has been bunched together with oil so in future they can charge us upto 15-20 dollars depending on oil prices. IP pipie line is like a pipe dream now. Iranians were trying to rip us off.

@Topic
Iran have very weak case here. Sanctions havnt been lifted yet and at the rate they are going i doubt anything will change in near future. There is no future for this pipe line.
 

KN-1

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Iranians are unreliablie and by linking up your energy needs with them you are giving them a tap on your foreign policy...Something which would be very much a disaster for Pakistan...but this is more than a year old news..so work on pipe line has already started..rest assured we are paying Iranians for the gas..its not free..so customer first.or GTFO..
Agree with u,

@cb4 thanks bro, if rates are higher 3 times then i am happy with tapi.
 

Pomegranate

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Its International Law and there is no binding power to that of course .. iran cannot put sanctions on pakistan .. they cant do a thing if we refuse to take their gas ... just recently they opened fire at the border and has taken innocent lives ...
 

Albatross

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Besides the political issues i.e. Arab pressure and Sanctions imposed by the West, the gas price that we were being offered from Iran was expensive and such agreement was in the Zardari tenure.

-----------------------------------------------------------------------------------------------------------------------------

The TAPI pipeline will bring 3.2 billion Cubic Feet Gas per Day (BCFD) of gas to Afghanistan, Pakistan and India and with the current prices of Brent oil, Pakistan will get a rate of $5.7-6.2 per MMBTU,

Work on TAPI pipeline’s Pak segment to start in 2017

-----------------------------------------------------------------------------------------------------------------------------

We have an agreement with Iran that we will buy gas for $15/ MMBTU. However, Turkmenistan is supplying gas to Japan at a rate of $4/ MMBTU,” he said.

Iran gas pipeline not in favour of Pakistan: report - Newspaper - DAWN.COM
I don't think we have or for that matter any state can have a fix gas price from a seller state . Gas contracts are always done relatively to oil prices and is thus never fully fixed .

Iran is desperate at the moment as their dream of getting revenues from Oil sales has been shattered due to extremely low prices and future forcasts for another few years aren't very promising as well .So they want to make money from anything possible selling gas to Pakistan being one of them and I guess its good time for Pakistan to negotiate a good rate in range of 3-4 $ per MMBTU as Iran needs to sell gas to Pak more than Pak needs to buy it or we cansay both states will be equally benefitted contrary to earlier Iranian stance of being on a stronger footing.

Besides I would say we should talk about an oil pipeline too as importing from Saudia and Gulf increases costs due to carriage over sea unless Saudis are providing us below market rates getting oil through pipes from Iran would be cheaper.
 

cb4

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The other thing that concerns Iran gas is the construction of pipeline. We need at least $ 8-10 billion for that and Iran and other countries are unwilling to help. TAPI is being built by French or Russia firms with the cooperation of World Bank and they will major financiers.

Even our separate plan to import LNG directly from Russia includes the agreement of Russian firms building a pipeline from Karachi to Lahore. At the end of the day we have to see what interests us financially not politically.
 

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