China offers 500 mln-dollar loan to Pak for IP gas pipeline project

[cirr]

Wed, 13 Mar 2013 ANI

Islamabad, Mar. 13 (ANI): In a major development, China has offered a 500 million dollar loan to Pakistan for the controversial Iran-Pakistan gas pipeline project, which was launched despite strong objections from the United States.

Pakistan had earlier planned to generate the billion dollars through the tax and Iran will be putting in 500 million dollars, reports The Express Tribune.

This development comes days after Pakistan handed over to China control of its key Gwadar port in Balochistan.

Islamabad and Tehran had formally launched the project on Monday in an elaborate groundbreaking ceremony held at the Pakistan-Iran border.

Petroleum ministry officials confirmed that Pakistan is in the middle of procuring compressors and pipelines from a Chinese company and Iranian company Tadbir will do the construction.

The 1,600-kilometre pipeline, projected to cost a whopping $1.5 billion would enable the export of 21.5 million cubic meters of Iranian natural gas to Pakistan daily. The country hopes to overcome its energy crisis with the 4,000 Megawatts capacity of this project.

(ANI)

China offers 500 mln-dollar loan to Pak for IP gas pipeline project

 

[cirr]

Iran-Pakistan gas pipeline: In snub to US, China offers $500m loan

By Zafar Bhutta

Published: March 13, 2013

IRAN / CHAHBAR: The United States has made clear its strong stand against the Iran-Pakistan gas pipeline – but the first world power will perhaps be further irritated to hear that China is backing it with a $500 million loan to Pakistan.

“In a major development, China has offered [the] loan,” an official at the Pakistan Embassy in Iran told The Express Tribune. The remaining $500 million would be generated through the Gas Infrastructure Development Cess from gas consumers.

Pakistan had earlier planned to generate the billion dollars through the tax and Iran will be putting in $500 million.

The geopolitical sands appear to be shifting on more than one front as this development comes days after Pakistan handed over to China control of its key Gwadar port in Balochistan.

In one of the boldest snubs of consistent US pressure and warnings, Islamabad and Tehran formally launched the project on Monday in an elaborate groundbreaking ceremony held at the Pakistan-Iran border.

Petroleum ministry officials confirmed that Pakistan is in the middle of procuring compressors and pipelines from a Chinese company and Iranian company Tadbir will do the construction. Pakistani companies such as Sui Northern Pipeline Limited, Sui Southern Gas Company Limited and Frontier Works Organisation would be involved.

The board of directors at the Interstate Gas Systems met March 8 to consider awarding the contract for the pipelines and compressors to Chinese company Panyn Chu King Steel Limited that will provide the pipeline at the rate of $1,650 per tonne, including compressors. The board will be negotiating for discounts with the Chinese firm.

Meanwhile, an Iranian company had quoted the price of $1,980 per tonne. An official said that Iranian contract prices would be turned down because they are higher.

The 1,600-kilometre pipeline, projected to cost a whopping $1.5 billion would enable the export of 21.5 million cubic meters of Iranian natural gas to Pakistan daily. The country hopes to overcome its energy crisis with the 4,000 Megawatts capacity of this project.

Iran-Pakistan gas pipeline: In snub to US, China offers $500m loan – The Express Tribune

 

[Matrixx]

Who will give $1 billion........

 

[genmirajborgza786]

great news & development in international Geo-politics, this was a masterstroke by China they kept a low profile thorough out while @ the same time successfully expanded their influence right from Cambodia,Malaysia, Myanmar,Bangladesh,Sri Lanka, Maldives,Seychelles, the gulf of Aden, Africa,Pakistan & now Iran !

simply put it, "brilliant" !

 

[Srinivas]

It is more like China and US battling out in Pakistan.

 

[narcon]

This is just short of showing middle finger to USA by China

 

[SamranAli]

so i can believe more that this pipeline will end in China as IPC gas pipeline. Anyway great development and slap on USA's ugly face..

 

[Pandora]

Who will give $1 billion........

500 million is supposed to be invested by Iran as a part of deal. If china gives us 500 million then Rest we can somehow manage.

 

[Black Widow]

so i can believe more that this pipeline will end in China as IPC gas pipeline. Anyway great development and slap on USA's ugly face..

Genius is the only word I can think now...

 

[Pandora]

Genius is the only word I can think now...

Short sighted is the word for you. Just because India didn't participate due to external pressure doesn't mean china wont as well. China needs energy to meet its future economic expansion so Iran can be the best place to start being right next door.

 

[Secur]

Just when Iranian President mentioned that the pipeline can be extended to the North of Pakistan ... The message was clear to those who understand the developing situation of the region ...

 

[neehar]

its good for now..but looking at the bigger picture it might be a risk to pakistan's economy mainly because of 2 reasons
1. as us is departing from afghanistan reliance on pakistan decreases and the significance of pakistan decreases in u.s foreign policy so it wouldn't bother to trouble ur economy as the dependence on u will be decreased.
2. u.s already hates iran and now china which have differences with u.s on ample issues is sponsoring ur project which means a double blow to u.s
Afghanistan remained as a battle field for u.s and russia for a long time godforbid pakistan may replace it between u.s and china in the future..china supports pakistan but not at the cost of its economy for now economy of china is strong but iff theres any change in the scenario first blow will be taken by pakistan

 

[Kompromat]

Sindh kay, kinaray say lay kay ta ba khaak e Kaashghar.

@muse @Hyperion

 

[BigDaddyWatch]

We should be proud.

 

[ChinaToday]

very good news let see how uncle sam going to impose sanction on iran china Pakistan and perhaps n korea LOL