I just hope due to joining IPI pipeline. India gets kicked out from the nuclear energy assitance from the United States. India should clearly not support Iran, and this deal will definately help them get more momentum during the time of sanctions. 
Importance of Iran-Pakistan-India pipeline
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I just hope due to joining IPI pipeline. India gets kicked out from the nuclear energy assitance from the United States. India should clearly not support Iran, and this deal will definately help them get more momentum during the time of sanctions.
Webby, India is not getting any "assistance" from US. US is just removing the barriers created against us, nuclear apartheid, you may call it. Once the barriers are removed, India would be integrated with the global nuclear powers. The sanctions have to be removed. We need no assistance. We have the purchasing power, we need access to the fuel.
America has been conveyed to in no uncertain terms, that they will NOT get what they expect aafter the nuke deal. India is not one of their proxy states. India will not follow American wishes in its Foreign Policy. We will do what is in our interests. There have been many statemnts to this regard, and replies by US officials on the issue. There is a qualitative difference between how US can manage other nations and us.
The government will fall before the blink of an eye if it remotely looks as though they are toeing the american line. And there would be no sanctions for us unless we test a nuke.
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This idea does not seem feasible to me. Primarily because this will mean that Pakistan and Iran have a bilateral agreement to buy gas as opposed to Pakistan being a third party in the India-Iran gas deal. Iran has assured India that in case of hostilities with Pakistan, the gas supply to the pipeline will be cut off if Pakistan cuts off gas supplies to us.
But if this formula is accepted that means that Iran cannot stop the gas supplies while Pakistan can. So i dont think it will be accepted.
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No US pressure on Iran pipeline: Deora to Aziz
NEW DELHI: US antipathy towards the $7 billion pipeline for wheeling gas from Iran to India through Pakistan cast its shadow over Tuesday's talks between Pakistan prime minister Shaukat Aziz and oil minister Murli Deora, even as Islamabad put up a brave front by proposing a formula aimed at allaying India's fears over security of the pipeline and break the logjam over transit charges.
Highly-placed sources said at his meeting with Deora, Aziz brought up the issue of US energy secretary Samuel Bodman's visit to Delhi just before the 14th Saarc summit.
Aziz quizzed Deora as to whether the Indian oil minister was worried over any US pressure against proceeding with the pipeline. On his part, Deora replied that Pakistan, and not India, should be worried over any US pressure.
"Mr Prime Minister, the US energy secretary did raise pipeline issue. We told them they are a friend but it is none of their concern...they cannot interfere with India. What about Pakistan? I guess you have more to worry about the US. If pipeline fails it will be because of you and me failing to agree and not because of any US pressure,"sources quoted Deora as telling Aziz.
Deora also indulged in some plain talking, first reported by TOI on Wednesday, by asking Pakistan to waive transit fees as it was also a beneficiary of the pipeline. To this, the Pakistan PM proposed a new formula.
"Why doesn't Pakistan sell the gas to India at its borders instead of New Delhi buying it from Iran and transporting across Pakistani territory,"Aziz suggested.
This way, India will be free of concerns over the safety of the pipeline passing through Pakistan territory and it will be Islamabad's responsibility to ensure gas supplies.
Indian concerns over the security issue were stressed by petroleum secretary M S Srinivasan who told Aziz that it was of importance as at stake will be downstream investments of $5-7 billion that will be made on the Indian side.
Aziz said Pakistan could buy 60 million cubic metres per day of gas from Iran, use half of it and sell the rest to India.
http://timesofindia.indiatimes.com/...ipeline_Deora_to_Aziz/articleshow/1867983.cms
NEW DELHI: US antipathy towards the $7 billion pipeline for wheeling gas from Iran to India through Pakistan cast its shadow over Tuesday's talks between Pakistan prime minister Shaukat Aziz and oil minister Murli Deora, even as Islamabad put up a brave front by proposing a formula aimed at allaying India's fears over security of the pipeline and break the logjam over transit charges.
Highly-placed sources said at his meeting with Deora, Aziz brought up the issue of US energy secretary Samuel Bodman's visit to Delhi just before the 14th Saarc summit.
Aziz quizzed Deora as to whether the Indian oil minister was worried over any US pressure against proceeding with the pipeline. On his part, Deora replied that Pakistan, and not India, should be worried over any US pressure.
"Mr Prime Minister, the US energy secretary did raise pipeline issue. We told them they are a friend but it is none of their concern...they cannot interfere with India. What about Pakistan? I guess you have more to worry about the US. If pipeline fails it will be because of you and me failing to agree and not because of any US pressure,"sources quoted Deora as telling Aziz.
Deora also indulged in some plain talking, first reported by TOI on Wednesday, by asking Pakistan to waive transit fees as it was also a beneficiary of the pipeline. To this, the Pakistan PM proposed a new formula.
"Why doesn't Pakistan sell the gas to India at its borders instead of New Delhi buying it from Iran and transporting across Pakistani territory,"Aziz suggested.
This way, India will be free of concerns over the safety of the pipeline passing through Pakistan territory and it will be Islamabad's responsibility to ensure gas supplies.
Indian concerns over the security issue were stressed by petroleum secretary M S Srinivasan who told Aziz that it was of importance as at stake will be downstream investments of $5-7 billion that will be made on the Indian side.
Aziz said Pakistan could buy 60 million cubic metres per day of gas from Iran, use half of it and sell the rest to India.
http://timesofindia.indiatimes.com/...ipeline_Deora_to_Aziz/articleshow/1867983.cms
I second that.
This is new for me, got any links to support your claim?
Imho Pakistan sould seek an unconditional bilateral agreement regardless if India becomes a full player or not.
We should not put our needs at risk in case of any manipulation or dirty game by India in war time crisis. India will be receiving gas from Bay of Bengal around 2010 and will be less vulnerable to sabotage from Pakistan. We otoh need the gas and don't have other alternatives unless major finds occur in near future.
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It was in the newspapers a LONG time back. I'l search for it, but i dont know whether i can find it. This was when India was still reluctant to the IPI idea through Pakistan. That time Pakistan was not involved in the deal. That was when India was looking at various options like an undersea pipeline.
It was/is simply not acceptable to India that Pakistan have such a leverage over India, that they may stop the gas supplies to India any time they wish.
In that scenario, Iran assured that if Pakistan illegally stpoped gas supplies to India, then Iran would stop the gas flow in the pipeline. This way no one gets an advantage over another, which is just fine for India.
This step is also logical if you think about it. Pakistan also does not get an unfair deal by this method. It will come into force only if Pakistan becomes mischevious.
That is the Pakistani establishments' call not ours. Though i dont think Pakistan has enough money to go for the entire pipeline itself. Thi way, Pakistan needs to barely put money up, they get gas, as well as a good trasit fees. It doesnt get any better than this for Pakistan.
Yes, India no longer needs gas like it used to, apart from Bay of Bengal areas near the coast, significant gas reserves are estimated to be near the A&N islands. But its better to have surplus
India CANNOT play any dirty game in this context because it simply does not have the required leverage. The geography does not allow India to be the manipulator, but the manipulated.
Pakistan holds the key in this case. India cannot shut down Pakistan's gas supplies when they want to, Pakistan can. We are dependent on Pakistan entirely in this scenario. The only thing that India did was that they evened up the field. That if Pakistan illegally stops the gas flow to us, then Iran will stop the gas flow to them. Thus everything remains as it should be and no side gets an advantage over the other.
I'm talking about Indian cells in Afghanistan feeding the insurgents in Balochistan. India is capable of staging major sabotage by these insurgents and blaming Pakistan for it.
Your governemt is much better in blaming than ours.
Your governemt is much better in blaming than ours.
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I'm talking about Indian cells in Afghanistan feeding the insurgents in Balochistan. India is capable of staging major sabotage by these insurgents and blaming Pakistan for it.
Your governemt is much better in blaming than ours.
India COULD do that yes, BUT what purpose would it serve India? That would halt gas supplies to India also. This would only be the case when India-Pak are at war. In that case, this would automatically be a null point as Pakistan would shut off gas supplies to India.
No, our govt is not better at blaming, its just that democracies when they speak out against dictatorships tend to be taken at more than face value than vice verce. Were Pakistan to be a democracy too, then India's blaming would cease to have the effect that it does.
ECC approves IPI gas pipeline project in principle
ISLAMABAD: Iran-Pakistan-India Gas Pipeline project has been approved in principle in Economic Coordination Committee (ECC) of meeting held here on Tuesday.
The meeting was held under the chairmanship of Prime Minister Shaukat Aziz to discuss the issues related with IPI Gas pipeline Project and other related issues.
Giving details about IPI project, Secretary Petroleum Ahmad Waqar said the ECC approved gas sharing arrangement under which Iran would provide 2.1 billion cubic feet of gas per day in the first phase with equal share for Pakistan and India.
In the second phase, Iran would supply 3.2 billion cubic feet of gas per day. Out of the total 5.3 billion cubic feet to be received from Iran, Pakistan would get 2.1 and India 3.2 billion cubic feet of gas per day.
The first gas delivery is expected in 2012. He said Iran has informed that it is already working on its portion of the gas pipeline, which would also supply gas to eastern Iran.
He said a Steering Committee, headed by Petroleum Minister, has been formed to oversee the project. Its members include Advisor on Finance, Advisor on Energy, Deputy Chairman Planning Commission, Chairman CBR, Secretary Finance and Secretary Petroleum.
Dr. Ashfaq Hassan said the CBR collection taxes worth over 594 billion rupees in the first nine months of the current financial year as against the target of 579.8 billion rupees fixed for the period. The growth in tax collection this year was 21.3 percent as against last year.
He said inflation during first eight months of the current financial year stood at 8% as compared to 8.4% last year. He said there was a declining trend in inflationary pressure.
He also pointed out that the prices of 14 out of 26 essential items were on the lower side in Pakistan as compared to other regional countries.
http://www.thenews.com.pk/updates.asp?id=20734
ISLAMABAD: Iran-Pakistan-India Gas Pipeline project has been approved in principle in Economic Coordination Committee (ECC) of meeting held here on Tuesday.
The meeting was held under the chairmanship of Prime Minister Shaukat Aziz to discuss the issues related with IPI Gas pipeline Project and other related issues.
Giving details about IPI project, Secretary Petroleum Ahmad Waqar said the ECC approved gas sharing arrangement under which Iran would provide 2.1 billion cubic feet of gas per day in the first phase with equal share for Pakistan and India.
In the second phase, Iran would supply 3.2 billion cubic feet of gas per day. Out of the total 5.3 billion cubic feet to be received from Iran, Pakistan would get 2.1 and India 3.2 billion cubic feet of gas per day.
The first gas delivery is expected in 2012. He said Iran has informed that it is already working on its portion of the gas pipeline, which would also supply gas to eastern Iran.
He said a Steering Committee, headed by Petroleum Minister, has been formed to oversee the project. Its members include Advisor on Finance, Advisor on Energy, Deputy Chairman Planning Commission, Chairman CBR, Secretary Finance and Secretary Petroleum.
Dr. Ashfaq Hassan said the CBR collection taxes worth over 594 billion rupees in the first nine months of the current financial year as against the target of 579.8 billion rupees fixed for the period. The growth in tax collection this year was 21.3 percent as against last year.
He said inflation during first eight months of the current financial year stood at 8% as compared to 8.4% last year. He said there was a declining trend in inflationary pressure.
He also pointed out that the prices of 14 out of 26 essential items were on the lower side in Pakistan as compared to other regional countries.
http://www.thenews.com.pk/updates.asp?id=20734
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ECC approves IPI gas pricing formula
By Khalid Mustafa
ISLAMABAD: The first gas delivery of 2.1 billion cubic feet per day at the Pak-Iran border would be materialised in 2012, Petroleum and Natural Resources Secretary Ahmad Waqar said on Tuesday.
Accompanied by Dr Ashfaq H Khan, adviser to the Finance and Revenue Ministry, Waqar was addressing a press briefing after an Economic Coordination Committee (ECC) meeting. He said the transit fee, which Pakistan would get from Iran, would be decided in accordance with the best practices in the world.
The ECC meeting, chaired by Prime Minister Shuakat Aziz, approved in principle the gas-pricing formula, linking it to the price of Japan crude cocktail under the $7.2 billion IPI gas line project at the Pak-Iran border. After the IPI pipeline project started taking shape Pakistan and Iran have agreed on the gas pricing formula, which the ECC approved in principle.
Waqar said the Petroleum and Natural Resources Ministry would again move the ECC on the gas pricing formula issue for formal approval after getting the input from India. He said India would formally confirm the acceptance of gas-pricing formula after reaching an understanding on the transportation cost and the transit fee for the pipeline traversing Pakistan.
Waqar said the ECC also approved sharing of Iranian gas of 2.1 billion cubic feet per day equally between Pakistan and India in the Phase 1 of the IPI project. In the Phase-II, 5.3 billion cubic feet gas per day would be imported, out of which India would purchase 3.2 bcfd gas and Pakistan 2.1 bcfd. “The meeting also approved the IPI project that would be materialised on segmented approach.”
He said under the segmented approach, Tehran would lay the pipeline from Paras gas field to Pak-Iran order and Islamabad would lay pipeline from Iranian to Indian border. “The gas would be imported from the Paras gas field, which has 944 trillion cubic feet gas reserves — the second largest after Russia’s gas field. The Paras reserves are enough for the usage of next 50 years if the gas of 40 bcfd is utilised.”
Waqar said under the segmented approach Tehran has started laying pipeline from Paras field to Pakistan border as Iran also wants to provide gas to the population in its part near Pakistan border. He said the route, structure and cost of the pipeline between Iranian and Indian borders is yet to be decided. However, he added, the cost of laying the pipeline within the Pakistani territory has been estimated at around $3 billion.
Two routes of the pipeline are under consideration under which it would be having two lengths 7,500 km and 1,050 km, Waqar said, adding that the exact length and the cost would be decided after the route was finalised. “Pakistan will carry out the techno-economic feasibility of the project structure to be laid in its territory and to this effect an international consultant would be appointed.”
Responding to a question, he said in case India does not join the project, Iran and Pakistan would bilaterally materialise the project. Waqar said the ECC also allowed the steering committee to review the project. The committee will be headed by the petroleum and natural resources minister, and include the adviser to the prime minister on finance and revenue, the adviser to the prime minister on energy, the Planning Commission deputy chairman, the CBR chairman, the finance secretary and the petroleum and natural resources secretary.
He said the issues including transportation cost; transit fee; joint declaration; inter-governmental agreement; gas sales and purchase agreement, project structure; appointment of a project coordinator and the project feasibility study would be resolved by June. The ECC would also approve to transit fee and transportation cost after working out in consultation with India.
He said prior to the ECC, the steering committee would first review the transposition, transit fee and other issues.
He said the ECC meeting also approved the increase of intervention price of gram by Rs 100 from Rs 750 per 40 kg in July 2006 to Rs 850 per 40 kg and Passco to this effect has been asked to procure 200,000 tones of gram from the 2006-07 crop at Rs 850 per 40 kg to use it as buffer stock.
He said increase in intervention price would stabilise the gram prices, which have increased because of less productivity. He said the domestic consumption of gram ranges between 550,000 to 600,000 tones. The ECC also noticed that the foreign reserves have jacked up to $13.61 billion, the highest in the country’s history, owing to which the exchange rate is stable.
The News.
http://thenews.jang.com.pk/top_story_detail.asp?Id=7059
By Khalid Mustafa
ISLAMABAD: The first gas delivery of 2.1 billion cubic feet per day at the Pak-Iran border would be materialised in 2012, Petroleum and Natural Resources Secretary Ahmad Waqar said on Tuesday.
Accompanied by Dr Ashfaq H Khan, adviser to the Finance and Revenue Ministry, Waqar was addressing a press briefing after an Economic Coordination Committee (ECC) meeting. He said the transit fee, which Pakistan would get from Iran, would be decided in accordance with the best practices in the world.
The ECC meeting, chaired by Prime Minister Shuakat Aziz, approved in principle the gas-pricing formula, linking it to the price of Japan crude cocktail under the $7.2 billion IPI gas line project at the Pak-Iran border. After the IPI pipeline project started taking shape Pakistan and Iran have agreed on the gas pricing formula, which the ECC approved in principle.
Waqar said the Petroleum and Natural Resources Ministry would again move the ECC on the gas pricing formula issue for formal approval after getting the input from India. He said India would formally confirm the acceptance of gas-pricing formula after reaching an understanding on the transportation cost and the transit fee for the pipeline traversing Pakistan.
Waqar said the ECC also approved sharing of Iranian gas of 2.1 billion cubic feet per day equally between Pakistan and India in the Phase 1 of the IPI project. In the Phase-II, 5.3 billion cubic feet gas per day would be imported, out of which India would purchase 3.2 bcfd gas and Pakistan 2.1 bcfd. “The meeting also approved the IPI project that would be materialised on segmented approach.”
He said under the segmented approach, Tehran would lay the pipeline from Paras gas field to Pak-Iran order and Islamabad would lay pipeline from Iranian to Indian border. “The gas would be imported from the Paras gas field, which has 944 trillion cubic feet gas reserves — the second largest after Russia’s gas field. The Paras reserves are enough for the usage of next 50 years if the gas of 40 bcfd is utilised.”
Waqar said under the segmented approach Tehran has started laying pipeline from Paras field to Pakistan border as Iran also wants to provide gas to the population in its part near Pakistan border. He said the route, structure and cost of the pipeline between Iranian and Indian borders is yet to be decided. However, he added, the cost of laying the pipeline within the Pakistani territory has been estimated at around $3 billion.
Two routes of the pipeline are under consideration under which it would be having two lengths 7,500 km and 1,050 km, Waqar said, adding that the exact length and the cost would be decided after the route was finalised. “Pakistan will carry out the techno-economic feasibility of the project structure to be laid in its territory and to this effect an international consultant would be appointed.”
Responding to a question, he said in case India does not join the project, Iran and Pakistan would bilaterally materialise the project. Waqar said the ECC also allowed the steering committee to review the project. The committee will be headed by the petroleum and natural resources minister, and include the adviser to the prime minister on finance and revenue, the adviser to the prime minister on energy, the Planning Commission deputy chairman, the CBR chairman, the finance secretary and the petroleum and natural resources secretary.
He said the issues including transportation cost; transit fee; joint declaration; inter-governmental agreement; gas sales and purchase agreement, project structure; appointment of a project coordinator and the project feasibility study would be resolved by June. The ECC would also approve to transit fee and transportation cost after working out in consultation with India.
He said prior to the ECC, the steering committee would first review the transposition, transit fee and other issues.
He said the ECC meeting also approved the increase of intervention price of gram by Rs 100 from Rs 750 per 40 kg in July 2006 to Rs 850 per 40 kg and Passco to this effect has been asked to procure 200,000 tones of gram from the 2006-07 crop at Rs 850 per 40 kg to use it as buffer stock.
He said increase in intervention price would stabilise the gram prices, which have increased because of less productivity. He said the domestic consumption of gram ranges between 550,000 to 600,000 tones. The ECC also noticed that the foreign reserves have jacked up to $13.61 billion, the highest in the country’s history, owing to which the exchange rate is stable.
The News.
http://thenews.jang.com.pk/top_story_detail.asp?Id=7059
Janbaz
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Pakistan to lay $3 billion of Iran-India gas link
ISLAMABAD (updated on: April 10, 2007, 19:23 PST): Pakistan will award contracts worth up to $3 billion to construct its portion of a pipeline to transport Iranian gas to India, a petroleum ministry official said on Tuesday.
The total cost of Iran-Pakistan-India project has been estimated at $7 billion and the pipeline will link the world's second largest gas reserves in Iran with India through Pakistani territory.
Petroleum Secretary Ahmed Waqar told a news briefing the Economic Co-ordination Committee (ECC), the country's highest economic decision-making body, had approved the construction of project on a 'segmented basis'.
"Under this approach Pakistan and Iran will construct their portion of the project," said Waqar after the ECC meeting, who headed Pakistani negotiations with Iran and India.
The pipeline's route through the Pakistani territory has still to be decided, but Waqar said would be in the range of 750-1050 km long.
The contract to build the pipeline will be open to foreign as well as Pakistani companies.
Prime Minister Shaukat Aziz and his Indian counterpart renewed their commitment to the project during a regional summit in New Delhi last week.
South Asia's nuclear-armed rivals had to overcome years of hostility after more than a decade of talking about the potential for a pipeline, but more recently the project has been beset by other problems, notably differences over pricing.
Both Pakistan and India are in desperate need of more energy sources to fuel their fast-growing economies.
Pakistan anticipates a major shortage of oil and gas by 2010. India, which imports 70 percent of its crude oil and produces barely half the gas it consumes, is hunting stakes in foreign oil projects and importing liquefied natural gas.
Waqar said the construction of the pipeline would likely start in mid-2008 and expected the gas to start flowing by 2012.
Business Recorder.
http://www.brecorder.com/
ISLAMABAD (updated on: April 10, 2007, 19:23 PST): Pakistan will award contracts worth up to $3 billion to construct its portion of a pipeline to transport Iranian gas to India, a petroleum ministry official said on Tuesday.
The total cost of Iran-Pakistan-India project has been estimated at $7 billion and the pipeline will link the world's second largest gas reserves in Iran with India through Pakistani territory.
Petroleum Secretary Ahmed Waqar told a news briefing the Economic Co-ordination Committee (ECC), the country's highest economic decision-making body, had approved the construction of project on a 'segmented basis'.
"Under this approach Pakistan and Iran will construct their portion of the project," said Waqar after the ECC meeting, who headed Pakistani negotiations with Iran and India.
The pipeline's route through the Pakistani territory has still to be decided, but Waqar said would be in the range of 750-1050 km long.
The contract to build the pipeline will be open to foreign as well as Pakistani companies.
Prime Minister Shaukat Aziz and his Indian counterpart renewed their commitment to the project during a regional summit in New Delhi last week.
South Asia's nuclear-armed rivals had to overcome years of hostility after more than a decade of talking about the potential for a pipeline, but more recently the project has been beset by other problems, notably differences over pricing.
Both Pakistan and India are in desperate need of more energy sources to fuel their fast-growing economies.
Pakistan anticipates a major shortage of oil and gas by 2010. India, which imports 70 percent of its crude oil and produces barely half the gas it consumes, is hunting stakes in foreign oil projects and importing liquefied natural gas.
Waqar said the construction of the pipeline would likely start in mid-2008 and expected the gas to start flowing by 2012.
Business Recorder.
http://www.brecorder.com/
Pakistan approves gas sharing with India
Work to start next month
UNITED NEWS OF INDIA
Islamabad, Apr 11: Pakistan has approved gas-sharing with India and the gas-pricing mechanism at the Iran-Pakistan border under the 7.4-billion-dollar Iran-Pakistan-India(IPI) gas pipeline project.
The approval was accorded by Economic Coordination Committee (ECC) of the cabinet, which met here last evening under the chairmanship of Prime Minister Shaukat Azi. ââ¬Ëââ¬â¢The ECC constituted a committee to oversee the project implementation, including feasibility studies, inter-overnmental agreements, framework agreement and other related discussions on the pipeline,ââ¬â¢Ã¢â¬â¢ the Dawn newspaper quoted petroleum ministry officials as saying.
An official said that gas at the Pakistan border had been indexed with Japan customs cleared crude (JCC). In practical terms, this gas will be priced much higher than the locally produced gas which is also indexed with international oil prices. Currently, the average gas production price in Pakistan is 2.6 dollar per mmbtu.
http://www.greaterkashmir.com/Home/Newsdetails.asp?newsid=6166&Issueid=211&Arch=
Work to start next month
UNITED NEWS OF INDIA
Islamabad, Apr 11: Pakistan has approved gas-sharing with India and the gas-pricing mechanism at the Iran-Pakistan border under the 7.4-billion-dollar Iran-Pakistan-India(IPI) gas pipeline project.
The approval was accorded by Economic Coordination Committee (ECC) of the cabinet, which met here last evening under the chairmanship of Prime Minister Shaukat Azi. ââ¬Ëââ¬â¢The ECC constituted a committee to oversee the project implementation, including feasibility studies, inter-overnmental agreements, framework agreement and other related discussions on the pipeline,ââ¬â¢Ã¢â¬â¢ the Dawn newspaper quoted petroleum ministry officials as saying.
An official said that gas at the Pakistan border had been indexed with Japan customs cleared crude (JCC). In practical terms, this gas will be priced much higher than the locally produced gas which is also indexed with international oil prices. Currently, the average gas production price in Pakistan is 2.6 dollar per mmbtu.
http://www.greaterkashmir.com/Home/Newsdetails.asp?newsid=6166&Issueid=211&Arch=
Cheetah786
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This is excellent for building trust between the 2 nations.
Pakistan to lay $3 billion of Iran-India gas link
April 10, 2007
ISLAMABAD (Reuters) - Pakistan will award contracts worth up to $3 billion to construct its portion of a pipeline to transport Iranian gas to India, a petroleum ministry official said on Tuesday.
The total cost of Iran-Pakistan-India project has been estimated at $7 billion and the pipeline will link the world's second largest gas reserves in Iran with India through Pakistani territory.
Petroleum Secretary Ahmed Waqar told a news briefing the Economic Coordination Committee (ECC), the country's highest economic decision-making body, had approved the construction of project on a "segmented basis".
"Under this approach Pakistan and Iran will construct their portion of the project," said Waqar after the ECC meeting, who headed Pakistani negotiations with Iran and India.
The pipeline's route through the Pakistani territory has still to be decided, but Waqar said would be in the range of 750-1050 km long.
The contract to build the pipeline will be open to foreign as well as Pakistani companies.
Prime Minister Shaukat Aziz and his Indian counterpart renewed their commitment to the project during a regional summit in New Delhi last week.
South Asia's nuclear-armed rivals had to overcome years of hostility after more than a decade of talking about the potential for a pipeline, but more recently the project has been beset by other problems, notably differences over pricing.
Both Pakistan and India are in desperate need of more energy sources to fuel their fast-growing economies.
Pakistan anticipates a major shortage of oil and gas by 2010. India, which imports 70 percent of its crude oil and produces barely half the gas it consumes, is hunting stakes in foreign oil projects and importing liquefied natural gas.
Waqar said the construction of the pipeline would likely start in mid-2008 and expected the gas to start flowing by 2012.
http://www.ndtvprofit.com/homepage/news.asp?id=293734
April 10, 2007
ISLAMABAD (Reuters) - Pakistan will award contracts worth up to $3 billion to construct its portion of a pipeline to transport Iranian gas to India, a petroleum ministry official said on Tuesday.
The total cost of Iran-Pakistan-India project has been estimated at $7 billion and the pipeline will link the world's second largest gas reserves in Iran with India through Pakistani territory.
Petroleum Secretary Ahmed Waqar told a news briefing the Economic Coordination Committee (ECC), the country's highest economic decision-making body, had approved the construction of project on a "segmented basis".
"Under this approach Pakistan and Iran will construct their portion of the project," said Waqar after the ECC meeting, who headed Pakistani negotiations with Iran and India.
The pipeline's route through the Pakistani territory has still to be decided, but Waqar said would be in the range of 750-1050 km long.
The contract to build the pipeline will be open to foreign as well as Pakistani companies.
Prime Minister Shaukat Aziz and his Indian counterpart renewed their commitment to the project during a regional summit in New Delhi last week.
South Asia's nuclear-armed rivals had to overcome years of hostility after more than a decade of talking about the potential for a pipeline, but more recently the project has been beset by other problems, notably differences over pricing.
Both Pakistan and India are in desperate need of more energy sources to fuel their fast-growing economies.
Pakistan anticipates a major shortage of oil and gas by 2010. India, which imports 70 percent of its crude oil and produces barely half the gas it consumes, is hunting stakes in foreign oil projects and importing liquefied natural gas.
Waqar said the construction of the pipeline would likely start in mid-2008 and expected the gas to start flowing by 2012.
http://www.ndtvprofit.com/homepage/news.asp?id=293734
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