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China to Build Pipeline From Iran to Pakistan: Deal to be signed during XI's vist

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You think switching fuel supply is just a click of button?

Going off topic, but Americans are pretty much in a position to actually start selling oil to other countries. So KSA and other oil suppliers will soon have to look towards India and China to makeup the volume.
 
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The United States has openly declared that they will not allow this pipeline to be built... and I believe them.
 
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ISLAMABAD—China will build a pipeline to bring natural gas from Iran to Pakistan to help address Pakistan’s acute energy shortage, under a deal to be signed during the Chinese president’s visit to Islamabad this month, Pakistani officials said.

The arrival of President Xi Jinping is expected to showcase China’s commitment to infrastructure development in ally Pakistan, at a time when few other countries are willing to make major investments in cash-strapped, terrorism-plagued, Pakistan.

The pipeline would amount to an early benefit for both Pakistan and Iran from the framework agreement reached earlier this month between Tehran and the U.S. and other world powers to prevent Iran from developing nuclear weapons. The U.S. had previously threatened Pakistan with sanctions if it went ahead with the project.

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Dubbed the “Peace Pipeline,” the project will further bolster improving ties between Pakistan and Iran, which had been uneasy neighbors for decades as a result of Pakistan’s ties to Iran’s long-term adversaries, Saudi Arabia and the U.S.

“We’re building it,” Pakistani Petroleum Minister Shahid Khaqan Abbasi told The Wall Street Journal, referring to the pipeline. “The process has started.”

The pipeline will bring much-needed gas to Pakistan, which suffers from a crippling electricity deficit because of a shortage of fuel for its power-generation plants. Pakistan has been negotiating for months behind the scenes for China to build the Pakistani portion of the pipeline, which will cost up to $2 billion.

Tehran says that its 560-mile (900-kilometer) part of the pipeline from an Iranian gas field is complete. Iran has long pressed Pakistan to build its half of the scheme.

Pakistan hasn’t begun construction, however, in light of threatened sanctions from the U.S. for trading with Iran. Islamabad had been trying to work around the sanctions by asking the Chinese to construct the pipeline but not yet connect it to the Iranian portion. The prospect of an Iran nuclear agreement, which would ease the sanctions in stages once the deal is completed, has given Islamabad further impetus to clear the project. Among the first restrictions to be lifted, according to the framework accord, would be prohibitions on Iranian energy exports.

“This [Iran nuclear agreement] will help us in getting a few things which were coming into the way of the Iran-Pakistan gas pipeline to be cleared and we will move forward,” Pakistan’s ambassador to Iran, Noor Muhammad Jadmani, said Sunday in Tehran, according a report on IRNA, the official Iranian news agency.

Pakistan is negotiating with China Petroleum Pipeline Bureau, a subsidiary of Chinese energy giant China National Petroleum Corporation, to build 435 miles (700 kilometers) of pipeline from the western Pakistani port of Gwadar to Nawabshah in the southern province of Sindh, where it will connect to Pakistan’s existing gas-distribution pipeline network.

China Petroleum Pipeline Bureau referred questions to CNPC, which didn’t respond to a request for comment.

The cost would be $1.5 billion to $1.8 billion for the pipeline, or $2 billion if an optional Liquefied Natural Gas terminal at Gwadar is included in the scheme. Under the deal, 85% of the financing will be provided by a Chinese loan, with Pakistan coming up with the rest.

The remaining 50 miles (80 kilometers), from Gwadar to the Iranian border, will be built by Pakistan. The pipeline, which would take two years to build, would eventually supply Pakistan with enough gas to fuel 4,500 megawatts of electricity generation—almost as much as the country’s entire current electricity shortfall.

The pipeline would give Iran a market to its east for its gas. The pipeline scheme, conceived in 1995, originally was supposed to extend to India. Tehran blames U.S. pressure for India dropping out in 2009.

Islamabad believes the Iranian gas is the cheapest and simplest energy supply option for Pakistan. Pakistan will also start to take liquefied natural gas from Qatar, and it remains in protracted multicountry negotiations over a pipeline that would bring gas from Turkmenistan through Afghanistan to supply Pakistan and India. Washington had long lobbied Pakistan to go for the Turkmenistan pipeline instead of the Iranian one. There was no immediate comment from the U.S. embassy in Islamabad on whether Washington had now changed its view on the Iran pipeline.

The Chinese president’s visit, which has been postponed at least twice, is now expected on or around April 19.

Pakistan has had a close strategic alliance with China for decades—aimed mostly against common foe India—but now Beijing is seeking to add an economic dimension to the relationship. Islamabad and Beijing plan an “economic corridor” linking the Pakistani port of Gwadar, which is under Chinese management, to southwestern China with road and rail connections. The highly ambitious program, which also includes power-generation projects, carries a price tag of some $40 billion. Unveiling agreements and details for the economic corridor will form a center piece of Mr. Xi’s visit.

The Iran pipeline isn't part of the economic corridor but it will be separately fast-tracked, Pakistani officials said.

“The Chinese have an expertise, a willingness to come here, and also work in areas which are not considered to be very safe,” said Hamayoun Khan, director of the Pakistan Council on China, an independent think tank based in Islamabad.

China to Build Pipeline From Iran to Pakistan - WSJ
Then it must have been Govt to Govt agreement with No Chinese Bank involved. Chinese would be funding Pakistan with CNY which would in turn be converted into PKR and then utilized for construction. However, the deal still hangs on the lifting of sanctions which still an if to date.

The United States has openly declared that they will not allow this pipeline to be built... and I believe them.
Not unless the sanctions are lifted or a way around is found.
 
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Lets see. If Military stops spending $ 5 Billion on Submarines from China, $ 13 Billion on Nuclear Reactors from China, $ 1-2 Billion on new and used Fighter Jets from United States, $ 1 Billion on Gunship Helicopters from United States and $ 1 Billion on another set of Gunship Helicopters from Russia then sure we can do wonders in Economic , Infrastructure Development by ourself
can u please elaborate the part..."$ 1-2 Billion on new and used Fighter Jets from United States"....actually I don't have info about it....is it a new deal about F-16s,which version and how many?
 
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No Intention to troll.... but a sincere question to Pakistani bros/sis...

China shows good intention of doing such pipeline projects, metro project, industrial corridors, gwador port, railways... it is good for your nation and economy. But what is the general opinion of people? because in past it was USA and Saudi helping... now its China.

The helping hand is not for FREE, you will all agree on this? there will be some kind of payment/compromise to some extent? have you ever thought to what extent that payment/compromise can go? i am just asking because you are already seeing whats happening in your nation because of Saudi and USA interference.

regards
 
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Maybe. But I would rather stay with realpolitik of it all. China is not a light weigh nation. It can trade sanctions or no sanctions. The timing of things usually have a meaning.

China officially announced its Yemen policy and termed Saudi actions an aggression. Maybe this is Chinese offer to Pakistan, to stay away from Yemen. Kind of like a counter-offer to what KSA is offering to Pakistan.

The last thing, China would want to see, is a weakened Pakistan, with its military stretched, bogged down in Yemen and incapable to stand up to India.

Things will become more clear in coming months. Then we can for sure see what was happening now.
Would China want to see a weakened Pakistan?
NO, NO, NO, A strong Pakistan is best for China.
A strong, prosperous Pakistan will contribute to the large-scale development of the western region of the China。
A strong, prosperous Pakistan will contributes to the stability of the border areas China。
A strong, prosperous Pakistan will contributes to One Belt and One Road’ project。
 
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It's not just for us. They need a secure land route that can provide them with energy resources in case of a conflict.
Yes I subscribe to you. Once the ASEAN closed the malacca, We can get nothing apart from shit. It's just a cakewalk for them to blockade the channel with their little navy.

Of course there should be a Defence budget. But two questions come to my mind. First is there an unlimited budget or in other words is government being blackmailed to give military money whenever they feel like ? Second, should it be our first priority ? Bhutto made it by coining the words 'We will eat grass until we make nuclear weapons'. In my opinion by 1998 this attitude should have stopped. I see no reason to increase warheads from say 50 to 200. For our arch rival India even 1 or 2 should be enough to scare. By now we should be meeting human development and infrastructure needs. Millions of people are without gas, electricity, food, and water, and health care. For them this is their survival.
Positive, a different view although I can't completely agree. The stress of defence of Pakistan has released because India turns its gun pointing China now. It's dedicate itself to kick China's ***. As a matter of fact we draw some attentions from India
 
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Would China want to see a weakened Pakistan?
NO, NO, NO, A strong Pakistan is best for China.
A strong, prosperous Pakistan will contribute to the large-scale development of the western region of the China。
A strong, prosperous Pakistan will contributes to the stability of the border areas China。
A strong, prosperous Pakistan will contributes to One Belt and One Road’ project。

Well said. Pakistan is not a "foreign country" but the best friend in the neighborhood, them being prosperous and strong is the greatest thing for the brotherhood.
:pakistan:
 
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The Pakistan-Iran-China gas pipeline is the first building block of the post-Arab, post-oil world. A majestic testament to the enviable geographic location of Pakistan. This also acts as a prelude to the blooming of Gwadar-the Babylon of 21st century. Pakistan Zindabad!!
 
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