Iran-Pakistan Gas Pipeline (IPP) News & Updates.

[Neither Right Nor Wrong]

dont know wat r u all talking about....

there is only one valid question asked in this article... which is wat will happen when oil price will reach 150$?
and the answer to this is that we will still be saving money by not using oil to produce electricity but gas which will be 78% of oil price.

or is there somehting which im missing

Well the oil which used to produce electricity is not petrol or Diesel but heavy oil or residual oil , which is considerably cheaper

Couple of years ago when crude oil prices were at $150 per barrel , but heavy oil prices did not increase more than $1000 per tonne.

This point is rather significant from India's pov , since India mainly uses coal and not oil to produce electricity.

So if gas prices start fluctuating wrt oil prices , then electricity prices will have to be revised and re-revised very frequently , which might not be very convenient.

 

[Dr.Evil]

actually thats the only point im looking at.

if we dont import this gas then we ll be using oil to generate electricity. wont that be much worse??

I Think It would be lot cheaper for pakistan to produce electricity by using its Huge coal reserves, that would be the cheapest after Hydel energy.

The point being - LNG price fixed to Oil prices ( Pakistan signing 40 Years Contract ). The global stock of Oil is only going to reduce thus increasing the price of both in the near future.

 

[Cheetah786]

Russell pretty much sums it up

 

[Cheetah786]

Ok so u think pakistan and the rest of the world will be paying the full price of oil and other fuels while india will some how magically get it for 1980s price specially if the so called fuel is running out

 

[Hyde]

well i am not impressed again with yet another article from Times of India

First of all its 78% of crude oil and not 80%. Secondly the OPEC nations have repeatdly been saying that they will put all effors to keep the oil prices down below 100 dollars and ideally between 70 dollars to 100 dollars for the next 10 years or so and me being a forex trader, energy trader does not think 150 dollars of oil will take another jump any time soon. I trade oil on daily basis and after oil reaches 85 dollars, all nations get together to lower its prices once again for one reason or another and it fall below to 67 once again (perhaps to avoid recession once again as they are heavily relying upon oil)

I seriously don't think Oil will go 150 within next 10 years or so and we don't know what the future is holding for us, do we?

Btw some oil news websites are saying that it is expected to fall around 40 dollars per barrel once again before jumping any further i am not sure how accurate they are

and last but not last, this gas deal has been inked keeping future prices of oil in mind and still as per Pakistani experts it will be far cheaper than our imported oil that we use to generate electricity and there is another clause in the agreement that says if any other nation manages to ink a gas deal with Iran that is cheaper than us then as per agreement Iran will have to offer us the same price that is offering to any third nation

 

[Dr.Evil]

Ok so u think pakistan and the rest of the world will be paying the full price of oil and other fuels while india will some how magically get it for 1980s price specially if the so called fuel is running out

Chettah you are just taking it in a negative way b'cs an indian is saying it. Think about the article from a logical point of view.

Pakistan has such large reserves of coal, why cant it be used to generate electricity cheaply.

You have more options than other countries, as you have not usedup your coal reserve.

If you still think Indians are just trying to undermine pakistan, feel free to think so.

 

[Spring Onion]

Ma’am, you being a Journalist should know that all Turkmenistan Natural Gas will go to Europe via Russia, China and for Northern Iran.

Of the three parties involved Iran will “very aggressively” ensure that no Turkmenistan Natural Gas “competes” with Iranian Natural Gas for Pakistan and India!

Yes i know but in TAPI its US that has to play a bigger role to ensure it and it is also going to undermine Iranian desires for cashing in the market.


Its a pitty that wrong policies of US to go for war in Afghanistan have messed up this project.

I still dont see any progress or supply by 2015 as announced by US

 

[Hyde]

actually thats the only point im looking at.

if we dont import this gas then we ll be using oil to generate electricity. wont that be much worse??

Exactly, you see the matter is we have linked our deal at 78% of crude oil now wherever the crude oil moves it should not matter much. The experts says the electricity in this gas deal at 78% will be cheaper than importing crude oil from other countries. So wherever the oil price is heading it will remain cheaper thanks to the fixed price of 78%. For example at the moment crude oil is around 75 dollars per barrel so our gas price is its 78% and count the number of MW of electricity we generate in our country.So when the price goes 150 dollars per barrel, our gas price will be its 78% once again and back in 2008 we were generating electricity at 150 dollars per barrel in Pakistan. The plants were still working indicating we need electricity at all costs. So overall if at 75 dollars per barrel the price for the electricity generated by gas is cheaper for us, it will remain cheaper for us if the price goes 150 dollars or whatever price she wishes to move on. Overall because of its fixed price it won't effect us much so it will be a cheaper alternative comparing to oil at any price

Secondy this is not the only project in our country. We have cheaper energy sources in our country and at the moment we need electricity at all costs. Once the hydro power projects and coal projects are completed it will bring the costs down to overall electricity generation. This gas project may be a bit expensive but when you see cheaper hydro power projects generating electricity the overall/average costs of our country's electricity will be down and will be affordable (i hope it makes sense )

yes for the time being its the situation.

Once the gas transportation starts and we use it only then we will be having results how much it helps.

Besides Iran also offered us electricity which is far better to get for Balochistan and other areas

Frankly speaking the electricity iran offering to us in rent power plants is far cheaper than the electricity we will be generating from the Iran-Pakistan gas pipeline. Both countries are in negotiations and it is expected to sign an agreement by next year and the electricity will start receiving by 2014/2015. Lot of infrastructure required for this project (i.e. Transformers ) and Iran is willing to provide assistance by funding this project herself.

What about TAPI ?? wasnt it suppose to start supply by 2015??

Americans pressued all relevent nations to join TAPI to isolate Iran but Pakistan moved ahead with Iran-Pakistan gas pipeline so this project is temporarily shelved. It is still under consideration but both India and Pakistan are not seems to be interested by bringing this gas from Afghanistan route for security purposes and Pakistan will be fullfilling her requirements from Iran Gas pipeline and India by generating electricity on nuclear so in my opinion It may form reality in future but definitely not 2015.

 

[Cheetah786]

Cheetah you are just taking it in a negative way b'cs an indian is saying it. Think about the article from a logical point of view.

OK so actually believe a fuel thats in high demand all over the world and is running out some how magically producers will sell it to india for lot less then they can sell it for on the open market.

Pakistan has such large reserves of coal, why cant it be used to generate electricity cheaply.

Cause we have leaders that can see beyond there pockets.

If you still think Indians are just trying to undermine pakistan, feel free to think so.

Natural gas isnt only used to generate electricity in pakistan its used By industry its used at homes for cooking its used in cars as alternative to petrol.

If pakistan can sign a deal and get fuel even 10% below the trading price its a win win situation but since indians seems to think they can score a better price for it i can give you a greate deal on Taj Mahal.

Instead of defending a poorly written self pumping article cause its written by indian at all cost and suggesting all who disagree are stupid i suggest use your brian and call it what it is desprate TIMES OF INDIA.

 

[Hyde]

Yes i know but in TAPI its US that has to play a bigger role to ensure it and it is also going to undermine Iranian desires for cashing in the market.


Its a pitty that wrong policies of US to go for war in Afghanistan have messed up this project.

I still dont see any progress or supply by 2015 as announced by US

in my opinion, we will rent some electricity from Tajikistan and will not go ahead in this project "TAPI" for now - It will be shelved for another 10 years or so

Tajikistan is a small country with a lot of electricity in excess and it is only few miles away from Pakistan. All three countries (Afghanistan, Pakistan and China) are negotioating with Tajikistan to rent electricity for their neighbouring states. Tajikistan's Nurek Dam is more than enough to fullfill their country's energy requirements and anything besides that is electricity in excess. They have a huge hydropower potential and can offer us cheaper electricity than even Iran

 

[Contrarian]

actually thats the only point im looking at.

if we dont import this gas then we ll be using oil to generate electricity. wont that be much worse??

Point is that your making a mistake by linking the price of that gas to oil-or linking it to that extent.

You should have that gas, but with different pricing mechanism.

You might be saving money from producing electricity from gas rather than oil in relative terms but it is not sustainable because other countries would be sourcing gas at cheaper rates. That would make your country's industries less competitive vis-a-vis others, more expensive for households to consume electricity-a net negative effect in absolute terms.

 

[Marxist]

Iran to approve Pakistan gas pipeline deal this week

* Gas by 2015 seen crucial for Pakistan's energy crisis

* Iran needs revenues to develop energy sector, economy

TEHRAN, June 6 (Reuters) - Iran hopes to finalise a deal this week for a much-delayed pipeline to export natural gas to Pakistan by 2015, an energy official said on Sunday.

"The $7-billion Iran-Pakistan gas pipeline contract will be finalised this week, and based on the approved time framework the export of gas to Pakistan will be launched by the end of 2015," said Hojjatollah Qanimifard, deputy director in charge of investment at the National Iranian Oil Company.

"In a meeting in Tehran on Tuesday (June 8), the final approval on pipeline by the NIOC board of directors will be delivered to Pakistani officials and their letter of guarantee will be received," he said in the comments on semi-official news agency ILNA.

The project is crucial for Pakistan to avert a growing energy crisis already causing severe electricity shortages in the country of about 170 million, at the same time as it confronts Islamist militancy.

The pipeline will connect Iran's giant South Fars gas field with Pakistan's southern Baluchistan and Sindh provinces.

Iran has the world's second-largest gas reserves after Russia. But sanctions by the West, political turmoil and construction delays have slowed its development as an exporter.

Dubbed the "peace pipeline," the project has been planned since the 1990s and originally would have extended from Pakistan to its old rival, India.

However, India has been reluctant to join the project given its long-running distrust of Pakistan, with which it has fought three wars since they achieved independence in 1947.

Under a deal signed in March, Pakistan will be allowed to charge a transit fee if the proposed pipeline is eventually extended to India.

The United States has tried to discourage India and Pakistan from any deal with Iran because of Tehrans' uranium enrichment activities and suspicions it wants to build nuclear weapons.

Iran, whose economy has been hit by U.N. sanctions over the dispute, denies any such ambitions.

Iranian media reported on Sunday that the oil minister had ordered an end to talks with Anglo-Dutch Shell (RDSa.L) and Spain's Repsol (REP.MC) over the development of South Pars after the majors failed to meet ultimatums on their involvement.

Iran has the world's second largest gas reserves but has struggled for years to develop its oil and gas reserves.

Iran says it already makes $18 billion annually from production at 10 phases of South Pars but that income could leap to at least $96 billion a year when all phases are completed. China's National Petroleum Corporation is developing part of it.

The Islamic republic says it needs around $25 billion a year in oil and gas industry investment.

Hossein Noghrekar Shirazi, deputy oil minister in charge of international affairs, told Abrar daily on Sunday Iran's gas production capacity of 600 million cubic metres per day could rise to 1.1 billion cubic metres by 2015.

Iran to approve Pakistan gas pipeline deal this week | Reuters

 

[psychedelic_renegade]

If pakistan can sign a deal and get fuel even 10% below the trading price its a win win situation but since indians seems to think they can score a better price for it i can give you a greate deal on Taj Mahal.

Instead of defending a poorly written self pumping article cause its written by indian at all cost and suggesting all who disagree are stupid i suggest use your brian and call it what it is desprate TIMES OF INDIA.

Dude the guy has argued why India shouldn't join the project, no where he advised neither he has the authority to advise Pakistan administration to join or leave the project. Don't get too worked up!

TOI is more of a tabloid sort of journo, but Swaminathan Aiyar is noted economist, check his profile for more information. There are some learned men blogs for TOI, MJ Akbar, Jug Suraiya, Pritish Nandi to name a few. In debate you either support a view or oppose it, seems if you say anything in this forum which doesn't go well with majority, you are either supporting terrorism or brain-dead!

 

[Marxist]

Iran, Pakistan to seal gas pipeline deal tomorrow

Tehran, Jun.7 (ANI): Iran and Pakistan are likely to finalise all formalities regarding the much delayed seven billion dollar gas pipeline project on Tuesday (June 8).


Deputy director (investment) of the National Iran Oil Company (NIOC) Hojjatollah Qanimifard said officials of both countries would be meeting here tomorrow during which they would handing over letters of approval regarding the project to each other.

The seven billion dollars Iran-Pakistan gas pipeline contract would be finalised this week, and based on the approved time framework, the export of gas to Pakistan would be launched by the end of 2015," The Daily Times quoted Qanimifard, as saying.


"In a meeting in Tehran on Tuesday (tomorrow), the final approval would be delivered to officials in Pakistan and their letter of guarantee would be received," he added.


The pipeline will connect the South Fars gas field of Iran, which has the world's second-largest gas reserves after Russia, with Balochistan and Sindh.


Out of the total 7.6 billion dollars, which would be incurred on the project, Pakistan expects to spend 1.65 billion dollars.


Earlier, the said pipeline was to be extended to India
also, but it backed out of the project, as Pakistan refused to forego its demand for a hefty gas transit fee.


The Iran-Pakistan-India (IPI) project was conceived in 1995 and after almost 13 years India finally decided to quit the project in 2008. (ANI)

Iran, Pakistan to seal gas pipeline deal tomorrow

 

[M8R]

Expect a lot of negative psy-ops against Pakistan from Western Media tomorrow.