Iran ends cooperation agreement with Pakistan

[rmi5]

ISLAMABAD: Iran has unilaterally ended the government-to-government cooperation agreement with Pakistan, and after this decision the much-talked-about Iran-Pakistan IP gas pipeline project has become unfeasible, sources told Daily Times.
A copy of official documents seen by Daily Times disclosed that the Ministry of Petroleum and Natural Resources on October 2 revealed to the federal cabinet’s ECC that Iran has unilaterally ended government-to-government cooperation agreement with Pakistan and is not even prepared to offer $500 million for the construction of the long-awaited IP gas pipeline project. With this decision the IP gas pipeline project, in its present form, has become not feasible.
According to an agreement signed earlier between the two countries for the supply of natural gas to the country, Pakistan had been made bound to purchase gas from Iran till December 2014. Pakistan would pay one million dollars per day as penalty to Iran in case of its failure to purchase the Iranian gas. It has also been told to the ECC that Inter State Gas System; a company of petroleum ministry has issued a notice to Iran on IP gas pipeline project. The ISGS has claimed forced majeure on the basis of international sanctions on Iran, while under the forced majeure it has become unfeasible for Pakistan to work on the said gas import project. A clause of forced majeure has been included in the IP agreement, Petroleum Ministry informed the ECC meeting. Officials in the Petroleum Ministry believe that if sanctions on Iran are lifted in the future, Pakistan would have to ink a new agreement with Tehran for the purchase of Iranian gas to meet its energy demands. “Force majeure has been claimed under the IP gas line project,” a source said.

Iran ends cooperation agreement with Pakistan

@Horus @WebMaster @Oscar @Chak Bamu @al-Hasani @Akheilos @LeveragedBuyout @FaujHistorian @Secur @Slav Defence @DESERT FIGHTER @waz @American Pakistani

 

[ای ایران]

This project was always a waste of time. Pakistan doesnt have any money to complete the project on its side of the border and is too poor to pay for the regular supply of gas. It is also too unstable for this project to be feasible because of the Balouch separatists that regularly blow-up gas pipelines in Pakistan. It will also be an easy target for Taliban and other terrorists that operate inside that country.

 

[VCheng]

This pipeline was always nothing more than a pipedream, which can be now laid to rest, I hope.

 

[RAMPAGE]

I welcome this decision.

 

[LeveragedBuyout]

ISLAMABAD: Iran has unilaterally ended the government-to-government cooperation agreement with Pakistan, and after this decision the much-talked-about Iran-Pakistan IP gas pipeline project has become unfeasible, sources told Daily Times.
A copy of official documents seen by Daily Times disclosed that the Ministry of Petroleum and Natural Resources on October 2 revealed to the federal cabinet’s ECC that Iran has unilaterally ended government-to-government cooperation agreement with Pakistan and is not even prepared to offer $500 million for the construction of the long-awaited IP gas pipeline project. With this decision the IP gas pipeline project, in its present form, has become not feasible.
According to an agreement signed earlier between the two countries for the supply of natural gas to the country, Pakistan had been made bound to purchase gas from Iran till December 2014. Pakistan would pay one million dollars per day as penalty to Iran in case of its failure to purchase the Iranian gas. It has also been told to the ECC that Inter State Gas System; a company of petroleum ministry has issued a notice to Iran on IP gas pipeline project. The ISGS has claimed forced majeure on the basis of international sanctions on Iran, while under the forced majeure it has become unfeasible for Pakistan to work on the said gas import project. A clause of forced majeure has been included in the IP agreement, Petroleum Ministry informed the ECC meeting. Officials in the Petroleum Ministry believe that if sanctions on Iran are lifted in the future, Pakistan would have to ink a new agreement with Tehran for the purchase of Iranian gas to meet its energy demands. “Force majeure has been claimed under the IP gas line project,” a source said.

Iran ends cooperation agreement with Pakistan

Interesting development. Which of the following causes do you suspect are behind this?

1). Simply as stated, the project is not financially viable.
2). Iran's growing confidence due to anticipation of Western engagement in the event a nuclear deal is signed.
3). Sectarian friction.
4). The wrong bureaucrats and politicians were bribed.

On Pakistan's side, it's hard to see how a more advantageous agreement can be signed in the future, especially if sanctions on Iran are eased. On Iran's side, it's difficult to see why the insurance of closer relations and trade integration with Pakistan could be so easily dismissed. What are your thoughts, @rmi5 ?

 

[Irfan Baloch]

This project was always a waste of time. Pakistan doesnt have any money to complete the project on its side of the border and is too poor to pay for the regular supply of gas. It is also too unstable for this project to be feasible because of the Balouch separatists that regularly blow-up gas pipelines in Pakistan. It will also be an easy target for Taliban and other terrorists that operate inside that country.

Pakistan's poor international policy and clueless international relations have brought this day
just imagine from fact that its "democratic" government even lacks a foreign minster.
also its leaders were constantly harassed by Americans and Saudis and even bribed to kill this project.

its an opportunity lost and the major damage is for Pakistanis. the sham democracy in Pakistan will continue to sting it just like it religious fanaticism is killing its people like now

 

[Shardul.....the lion]

Just a suggestion to Iranian/Persian friends..........

Fence the wall or wire along the border with Pakistan....This will secure you against terrorists.....

India is doing along the border with Pakistan... Just serves you better ..........fire at sight of movement

 

[waz]

ISLAMABAD: Iran has unilaterally ended the government-to-government cooperation agreement with Pakistan, and after this decision the much-talked-about Iran-Pakistan IP gas pipeline project has become unfeasible, sources told Daily Times.
A copy of official documents seen by Daily Times disclosed that the Ministry of Petroleum and Natural Resources on October 2 revealed to the federal cabinet’s ECC that Iran has unilaterally ended government-to-government cooperation agreement with Pakistan and is not even prepared to offer $500 million for the construction of the long-awaited IP gas pipeline project. With this decision the IP gas pipeline project, in its present form, has become not feasible.
According to an agreement signed earlier between the two countries for the supply of natural gas to the country, Pakistan had been made bound to purchase gas from Iran till December 2014. Pakistan would pay one million dollars per day as penalty to Iran in case of its failure to purchase the Iranian gas. It has also been told to the ECC that Inter State Gas System; a company of petroleum ministry has issued a notice to Iran on IP gas pipeline project. The ISGS has claimed forced majeure on the basis of international sanctions on Iran, while under the forced majeure it has become unfeasible for Pakistan to work on the said gas import project. A clause of forced majeure has been included in the IP agreement, Petroleum Ministry informed the ECC meeting. Officials in the Petroleum Ministry believe that if sanctions on Iran are lifted in the future, Pakistan would have to ink a new agreement with Tehran for the purchase of Iranian gas to meet its energy demands. “Force majeure has been claimed under the IP gas line project,” a source said.

Iran ends cooperation agreement with Pakistan

@Horus @WebMaster @Oscar @Chak Bamu @al-Hasani @Akheilos @LeveragedBuyout @FaujHistorian @Secur @Slav Defence @DESERT FIGHTER @waz @American Pakistani

Yes, plenty of other options available.

I think it has been already posted bro in the Economy section.

 

[rmi5]

Yes, plenty of other options available.

I think it has been already posted bro in the Economy section.

I do believe that's an strategic issue, adding to the recent firing at pakistani troops, shows signs of change in Iran's policy regarding Pakistan.

 

[waz]

I do believe that's an strategic issue, adding to the recent firing at pakistani troops, shows signs of change in Iran's policy regarding Pakistan.

I agree. But they will just isolate themselves further.

 

[livingdead]

I do believe that's an strategic issue, adding to the recent firing at pakistani troops, shows signs of change in Iran's policy regarding Pakistan.

Somebody posted here Iran had already spent some money on her side(for IP), is it true?

 

[ای ایران]

Somebody posted here Iran had already spent some money on her side(for IP), is it true?

Its already been completed on the Iranian side. Work on the Pakistani side hasnt even begun.

 

[Cyberian]

Finally, Pakistan can now concentrate on other energy projects with Arabia instead of wasting time with the Iranians,

 

[rmi5]

Interesting development. Which of the following causes do you suspect are behind this?

1). Simply as stated, the project is not financially viable.
2). Iran's growing confidence due to anticipation of Western engagement in the event a nuclear deal is signed.
3). Sectarian friction.
4). The wrong bureaucrats and politicians were bribed.

On Pakistan's side, it's hard to see how a more advantageous agreement can be signed in the future, especially if sanctions on Iran are eased. On Iran's side, it's difficult to see why the insurance of closer relations and trade integration with Pakistan could be so easily dismissed. What are your thoughts, @rmi5 ?

Well, I do believe that everything in Iran is done by the direct order or consent of Khamenei, their leader. In Iran, such odds like having border clashes, then immediately the most important deal with a country, then sign a deal with the enemy of that country, does not happen accidentally
I am glad that you organized the discussion into this format.
Option 1 is not the case. Basically, Iran does not consider economic concerns as their main source for decision making. what matters are their strategic benefits. you can understand this by considering the huge direct and indirect costs(over 140 billion dollars) for so called Peaceful nuclear energy, or the money they pay to Hamas and hezbollah which puts them in isolation. As Khomeini said: "Economy belongs to donkeys!"
Option 3 is not the main reason either, since they are already having enough headache regarding sunnis, and are not looking for more Sunni-Shia clash.
option 4 is always present in every deal, but does not void them. No reason for bribery to cut such deal.
Option 2 is the answer or part of the correct answer. Iran is changing direction, since they no longer can afford their previous policy. It seems that getting close to India and getting far from Pakistan is part of their strategy.

 

[INDIC]

ISLAMABAD: Iran has unilaterally ended the government-to-government cooperation agreement with Pakistan, and after this decision the much-talked-about Iran-Pakistan IP gas pipeline project has become unfeasible, sources told Daily Times.
A copy of official documents seen by Daily Times disclosed that the Ministry of Petroleum and Natural Resources on October 2 revealed to the federal cabinet’s ECC that Iran has unilaterally ended government-to-government cooperation agreement with Pakistan and is not even prepared to offer $500 million for the construction of the long-awaited IP gas pipeline project. With this decision the IP gas pipeline project, in its present form, has become not feasible.
According to an agreement signed earlier between the two countries for the supply of natural gas to the country, Pakistan had been made bound to purchase gas from Iran till December 2014. Pakistan would pay one million dollars per day as penalty to Iran in case of its failure to purchase the Iranian gas. It has also been told to the ECC that Inter State Gas System; a company of petroleum ministry has issued a notice to Iran on IP gas pipeline project. The ISGS has claimed forced majeure on the basis of international sanctions on Iran, while under the forced majeure it has become unfeasible for Pakistan to work on the said gas import project. A clause of forced majeure has been included in the IP agreement, Petroleum Ministry informed the ECC meeting. Officials in the Petroleum Ministry believe that if sanctions on Iran are lifted in the future, Pakistan would have to ink a new agreement with Tehran for the purchase of Iranian gas to meet its energy demands. “Force majeure has been claimed under the IP gas line project,” a source said.
Iran ends cooperation agreement with Pakistan

Unlike the turbulent borders/relations with India and Afghanistan, the things between Iran and Pakistan were mostly calm, these things look a new development in the region.