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

[Sparten80]

The Iran - Pakistan Gas pipeline is long overdue. We have such an energy crisis in our country due to lack of planning and foresight as well many other factor that we dont need to go into here. Nonetheless, the signing of this pipeline deal is a step in the right direction. I was never a fan of having india join in on this project in the first place. That was the most foolish and irresponsible thing to do in the first place. Trying to include india, delayed the project by a decade and increased the price astronomically. Furthermore, the continued subjugation and occupation of Kashmir by india, failing to hold a plebiscite and the support of militant groups-Baloch and TTP whom kill innocent civilians in Pakistan) is further reason not to deal with them. The cost of the pipeline project has gone up considerably, but its better late than never, and in the long term, it will pay off for Pakistan to go it alone with Iran, and possibly at a later date, include China who would be more than happy to expand it to their western borders and improve our northern grid in the process. Acutely though, this project is needed by Pakistan itself, irrespective of others.

Pakistan needs the pipeline first and foremost for itself. We have an extensive and continually expanding Natural gas grid in our country and the import of cheap Iranian gas will help further in many additionally important fields like electricity generation and alternative fuels as well as job creation. The current load shedding occuring in our country on a daily basis should act as a catalyst to expedite this project.

Pakistan needs to be aggressive and seek out multiple ways to increase power generation not just to meet its immediate extreme shortfalls, but to encompass future growths in energy needs as well, especially with our expanding population, expanding gas grids and rapid urban mobilization and to maintain a high growth rate which inturn fuels our economy.

This should entail
-more Nuclear power plants,
-coal power (thar-Sindh),
-hydro-electic,
-import from Tajikistan,
-Solar energy
-Wind Energy (along Baloch/Sindh CoastLine),
-extension of Iranian surplus electricity lines from Balochistan-sistan into Pakistani Balochistan
** most importantly and acutely, this Iranian pipeline from the Pars field.

time if flying, 2014 is just around the corner as well.

We need to be pro-active and solve this issue on multiple fronts, energy is very important to our prosperity.

 

[Sparten80]

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

agreed, and also, not just western media, you'll be surprised who else will imitate the chorus(domestic ones too). But this time, we dont have time to be swayed, Energy is a must in our current deficit state.

we just need stay principalled and keep focused because the energy issue is in our national interest irrespective of who and what others may say.

We need this project, the energy crisis in Pakistan is very serious and needs to addressed immediately and on multiple fronts. This Iranian Gas pipeline is vital and should be done on urgent basis along with other projects(Coal, nuclear, hydro etc..)

 

[scrumpy]

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.

The article is preceded by the article about Shale gas and how the price of gas is falling relative to the price of oil because of better technology for extracting gas from shale is now available. Linking the price of gas to oil is wrong because more options for gas production is now available and this is expected to drive down the price of gas even as the price of oil goes up due to lack of available resources. I think it is very important for readers to read that article before reading this article.

When the author mentions Enron in the heading, he is pointing to the deal the Government of Maharashtra signed with Enron. He is not pointing to the bankruptcy of Enron as some readers have mistaking assumed. The circumstances were similar in the sense there was an acute energy crises created due to lack of generation capacity. The deal ended up bankrupting the Maharashtra Government and the deal had to be cancelled. A similar situation in Pakistan is now generating a lot of clamour for this deal. What he warns is that the pricing mechanism for this gas is wrong and the deal could turn out to be very costly for Pakistan and for India if it decides to join them.

 

[Marxist]

Iran approves "peace pipeline" deal with Pakistan

TEHRAN June 13 (Reuters) - Iran finalised a $7 billion "peace pipeline" deal on Sunday to export natural gas to Pakistan by 2015, Iran's state television reported.

"The deal was signed. Export of Iran's gas to Pakistan will be launched by the end of 2015," state TV reported.

"For 25 years Iran will export one million cubic metres of natural gas to Pakistan per day," it said.

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.

Iran has the world's second largest gas reserves after Russia but has struggled for years to develop its oil and gas resources. Iranian officials say the country needs $25 billion to develop its crucial energy industry.

Sanctions by the West, political turmoil and construction delays have slowed Iran's development as an exporter.

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

State television said the pipeline was 1,000 km (620 miles) long, with about 907 km of it already built.

Dubbed the "peace pipeline," the project has been planned since the 1990s and originally would have extended from Pakistan to its old rival, India. New Delhi has been reluctant to join the project because of its long-running distrust of Pakistan, with whom it has fought three wars since 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 Tehran's disputed nuclear programme, which the West fears is a cover to build bombs.

Iran, hit by a fourth round of U.N. sanctions on Wednesday over its refusal to suspend its uranium enrichment activities, denies any such ambitions.

Iran approves peace pipeline deal with Pakistan | Energy & Oil | Reuters

 

[sparklingway]

Iran, Pakistan sign gas export deal​

(AFP) – 7 hours ago

TEHRAN — Iran and Pakistan formally signed on Sunday an export deal which commits the Islamic republic to supplying its eastern neighbour with natural gas from 2014.

The contract is the latest step in completing a multi-billion dollar gas pipeline between Iran and Pakistan within the next four years.

"This is a happy day," Iran's Deputy Oil Minister Javad Ouji told reporters at the contract signing ceremony in Tehran.

"After decades of negotiations, we are witnessing today the execution of the agreement... to export more than 21 million cubic metres (742 million cubic feet) of natural gas daily from 2014 to Pakistan," he added.

He said that from Monday, Iran will start building the next 300-kilometre (187.5 miles) leg of the pipeline from the southeastern city of Iranshahr to the Pakistani border, through the Iranian port of Chabahar.

Iran has already constructed 907 kilometres of the pipeline between Asalooyeh, in southern Iran, and Iranshahr, which will carry natural gas from Iran's giant South Pars field.

Pakistan's Deputy Energy Minister Kamran Lashari, who was present at the signing ceremony, said that Islamabad will conduct a one-year feasibility study for building its section of the pipeline.

It will then "take three years for constructing the 700-kilometre pipeline" from the Iranian border to the Pakistani city of Nawabshah, he added.

The pipeline was originally planned between Iran, Pakistan and India, but the latter pulled out of the project last year.

Pakistan plans to use the gas purchased from Iran for its power sector.

Ouji said that Iran, which has the second largest gas reserves in the world, currently produces 600 million cubic metres of natural gas, of which 430 to 440 million cubic metres is consumed domestically.

It plans to raise output to 900 million cubic metres over the next three years with the expansion of South Pars and hopes to further hike it to 1,100 million cubic metres by 2015.

 

[ejaz007]

Pakistan, Iran sign $7.5 bn gas pipeline project
Monday, June 14, 2010
Peace pipeline to start supply from 2014; Pakistan to lay 700-km, Iran to build 300-km leg of pipeline; project enters implementation phase


ISLAMABAD: Pakistan and Iran on Sunday finalised the $7.5 billion gas project dubbed as a “peace pipeline” to start the supply of natural gas to Islamabad from 2014.

The landmark agreement was signed by the managing director of the National Iranian Gas Export Company Reza Kasaeizadeh, and his Pakistani counterpart from Inter State Gas Limited, Mohammad Naeem Sharafat.

The Pakistani delegation, included Secretary Ministry of Petroleum and Natural Resources Kamran Lashari. “After decades of negotiations, we are witnessing today the execution of the agreement... to export more than 21 million cubic metres (742 million cubic feet) of natural gas daily from 2014 to Pakistan,” Ouji said.

He said that from Monday (today), Iran will start building the next 300-kilometre leg of the pipeline from the southeastern city of Iranshahr to the Pakistani border, through the Iranian port of Chabahar.

Iran has already constructed 907 kilometres of the pipeline between Asalooyeh, in southern Iran, and Iranshahr, which will carry natural gas from Iran’s giant South Pars field. “Now the project has entered into its implementation phase and there are no further formalities left in way,” Sharafat said. According to him, the IP project was another testimony of the long historic and cordial relations between Pakistan and Iran.

The pipeline will connect Iran’s giant South Fars gas field with Pakistan’s Balochistan and Sindh provinces. Pakistan has to construct about a 700-kilometre leg of the pipeline from the border, traversing along the Makran Coastal Highway to connect with its existing gas transmission network at Nawabshah. A 42-inch diameter pipeline is planned to be built, which is estimated to cost $1.65 billion.

The project is crucial for Pakistan to avert a growing energy crisis, already causing severe electricity shortages in the country and the project would help generate around 5,000 megawatts of electricity.

Under the gas sale and purchase agreement (GSPA), Pakistan will import about 750 million cubic feet a day (mmcfd) with provision to increase it to one billion cubic feet a day (bcfd).The volume of imported gas will be about 20 per cent of Pakistan’s current gas production and the agreement is for a period of 25 years, renewable for another five years.

Iran has the world’s second largest gas reserves after Russia but has struggled for years to develop its oil and gas resources. Sanctions by the West, political turmoil and construction delays have slowed down Iran’s development as an exporter.

Iran state television said the pipeline was 1,000 kilometres long, with about 907 kilometres of it already built. The Pakistan-India (IPI) gas pipeline project was conceived in early ë90s. However, the project could not take off for various reasons, including the new gas discoveries in Pakistan of Miano, Sawan and Zamzama, Indian concerns on pipeline security and Iranian indecisiveness on certain issues.

Pakistan would be allowed under an agreement signed in March to charge a transit fee if the proposed pipeline is eventually extended to India. The project was revived and bilateral Iran-Pakistan Joint Working Group (JWG) was constituted and the first meeting was held on December 29-30, 2003 in Islamabad.

Iranian officials say the country needs $25 billion to develop its crucial energy industry. The United States has tried to discourage India and Pakistan from any deal with Iran because of Tehran’s disputed nuclear programme, which the West fears is a cover to build bombs. Iran, hit by a fourth round of UN sanctions on Wednesday over its refusal to suspend its uranium enrichment activities, denies any such ambitions.

Pakistan, Iran sign $7.5 bn gas pipeline project

 

[PakSher]

This will be great for the Pakistan economy. One of the best economic projects in Pakistan-Iran relations.

 

[bc040400065]

No objection to Pak-Iran pipeline deal: Holbrooke


By Online / Sumera Khan
June 20, 2010



ISLAMABAD: US Special Representative for Pakistan and Afghanistan Richard Holbrooke has said his country has no objection to the Pakistan-Iran gas pipeline project.

“Pakistan is facing an energy crisis. The US has no objection to the Pak-Iran gas pipeline project as it is an internal matter of Islamabad,” Holbrooke said at a joint news conference with Foreign Minister Shah Mehmood Qureshi on Saturday as they emerged out of a meeting between chairpersons of the US-Pakistan Strategic Dialogue at the Foreign Office.

Holbrooke went on to say that Pakistan was a great country and it had assumed vital significance all over the world. The entire world had acknowledged the unparalleled sacrifices rendered by Pakistan in the war on terror, he added.

“But it doesn’t mean that we’ve reached the end of the road. This is a tough, long struggle and much more needs to be done,” he said.

Referring to the sectoral dialogue, he said, “We are discussing real policy issues and how to work together to advance our common agenda”.

“This was the first time we have discussed water issues with Pakistan in such detail. Having provincial and federal water experts working together is essential to overcome Pakistan’s water scarcity issue,” he added. Responding to a question regarding development of Pakistan’s economy, he said, “We have discussed efforts to advance through Congress the Reconstruction Opportunity Zones (RoZ) legislation.”

He said Pakistan’s efforts to advance measures on labour rights and inspections for these ROZs also figured in the discussion.

“We also discussed efforts to promote business opportunities for Pakistani textile and apparel manufacturers. I am pleased to announce that the US will support Pakistani producers at a major trade show in New York, being held from July 13 to 15,” he said.

Holbrooke said, “We want to give the US business community a chance to learn that Pakistan is open for business, and we want to help you showcase the quality of your great Pakistani products.”

On trust deficit, he said Pakistan is most important ally in the war on terror and that we’ll never leave it alone in difficulties. He said terrorism is our common enemy and Pakistan had to face more losses as compared to any country.

Asked whom he would hold responsible if al Qaeda leader Osama bin Laden and Afghan Taliban chief Mullah Omar were hiding somewhere along the border between Pakistan and Afghanistan, Holbrooke said: “Many of their associates have been apprehended or killed. Even though these two people … are still at large, they are under intense pressure.”

Shah Mahmood Qureshi said the ongoing Pak-US strategic dialogue will be completed by July 9. He said seven rounds of dialogue have been undertaken while US secretary of state Hillary Clinton will visit Pakistan in July to kick off the second phase.

Holbrooke favoured bilateral engagement in the energy sector and said, “We only announced our initiatives on energy nine months ago when Clinton was here in October. Now the progress and measures put in place since Prime Minister Gilani convened your energy summit in April are clear”. He went on to note that power cuts have decreased in the urban areas “and we have seen a clear government commitment to put energy on a more solid financial footing”.



No objection to Pak-Iran pipeline deal: Holbrooke – The Express Tribune

 

[GUNNER]

US says new sanctions on Iran could impact Pakistan

Sun Jun 20, 2010 7:24am GMT

By Chris Allbritton

ISLAMABAD June 20 (Reuters) - Pakistan should be wary of committing to an Iran-Pakistan natural gas pipeline because anticipated U.S. sanctions on Iran could hit Pakistani companies, the U.S. special representative to the region said on Sunday.

While sympathetic to Pakistan's energy needs, the U.S. special representative to the region, Richard Holbrooke, told reporters that new legislation, which targets Iran's energy sector, is being drafted in the U.S. Congress and that Pakistan should "wait and see".

"Pakistan has an obvious, major energy problem and we are sympathetic to that, but in regards to a specific project, legislation is being prepared that may apply to the project," he said, referring to the pipeline. "We caution the Pakistanis not to over-commit themselves until we know the legislation."

Pakistan is plagued by chronic electricity shortages that have led to mass demonstrations and battered the politically shaky government of President Asif Ali Zardari.

U.S. Senator Joseph Lieberman said last week he expects Congress to finish shortly legislation tightening U.S. sanctions on Iran that will include provisions affecting the supply of refined petroleum products to Tehran, and add to sanctions on its financial sector.

Lieberman, an independent, is a member of a House-Senate committee of negotiators working on final details of the bill and said it could pass by July 4.

The $7.6 billion natural gas pipeline deal, signed in March, doesn't directly deal with refined petroleum products and was hailed in both Iran and Pakistan as highly beneficial.

The U.S. has so far been muted in its criticism of the deal, balancing its need to support Pakistan, a vital but unstable ally in the global war against al Qaeda, with its desire to isolate Iran.

But the legislation could be comprehensive enough to have major implications for Pakistani companies, Holbrooke said.
"We caution Pakistan to wait and see what the legislation is."

This was Holbrooke's tenth trip to Pakistan since President Barack Obama appointed him special representative to the region. His visit followed a series of working groups this week that are part of the U.S.-Pakistan strategic dialogue, which both countries say will lay the groundwork for a new relationship.

 

[GUNNER]

ISLAMABAD, Pakistan, June 20, 2010 (AFP) - The US special envoy to Pakistan said Sunday he had warned Islamabad against signing a deal with Iran on a gas pipeline, saying the US was preparing laws that could affect the project.

"We cautioned the Pakistanis not to over-commit themselves until we know the legislation," Richard Holbrooke, US President Barack Obama's special envoy to Afghanistan as well as Pakistan, told reporters.

"Pakistan has an obvious major energy problem. We are very sympathetic to it. In regard to the specific project, legislation is now being prepared which may apply to this project," said Holbrooke.
He declined to give details, saying he was not involved in drawing up the legislation, but cautioned that it could be "comprehensive."

"This can range from legislation which could be so comprehensive that something like this could create a major problem for any company or country," Holbrooke said.

Iran and Pakistan last week formally signed an export deal which commits Iran to selling natural gas to its eastern neighbour from 2014.

Iran has already constructed 907 kilometres of the pipeline between Asalooyeh, in southern Iran, and Iranshahr, which will carry natural gas from Iran's giant South Pars field.

The pipeline was originally planned to connect Iran, Pakistan and India, but the latter pulled out of the project last year.

Pakistan plans to use the gas purchased from Iran for its power sector.

The Obama administration on Wednesday added Iranian individuals and firms to a blacklist as part of US and European efforts to tighten the screws on Iran a week after UN approved sanctions against its nuclear programme.

The new US sanctions target insurance companies, oil firms and shipping lines linked to Iran's nuclear or missile programmes as well as the Islamic Revolutionary Guards Corps (IRGC) and Iran's defence minister Ahmad Vahidi.

The United States has long offered Iran trade and other incentives in exchange for halting its uranium enrichment programme, which western powers fear masks a drive to build a nuclear bomb.

Iran claims its aims are peaceful.

 

[you are fired]

now that's bad news what Pakistan is going to do now

 

[mjnaushad]

now that's bad news what Pakistan is going to do now

No sanction can stop any country to sell its natural resources. And the contract is inked so no need to worry.

 

[Awesome]

Power through and do not give in to blackmail.

 

[Hyde]

yesterday US said it has nothing to do with Iran-Pak gas pipeline as it is an internal matter of Pakistan

in my humble opinion nothing is going to happen as it has now become a part of law and will be complied by both respective countries. If US had some serious issues they would have objected over this pipeline back in 2008 when it was about to be inked.

Now nothing can happen and nothing serious will happen. This pipeline will go ahead without any hurdle and i see its already a success

 

[forcetrip]

Here is the Link.

No objection to Pak-Iran pipeline deal: Holbrooke – The Express Tribune



ISLAMABAD: US Special Representative for Pakistan and Afghanistan Richard Holbrooke has said his country has no objection to the Pakistan-Iran gas pipeline project.

“Pakistan is facing an energy crisis. The US has no objection to the Pak-Iran gas pipeline project as it is an internal matter of Islamabad,” Holbrooke said at a joint news conference with Foreign Minister Shah Mehmood Qureshi on Saturday as they emerged out of a meeting between chairpersons of the US-Pakistan Strategic Dialogue at the Foreign Office.

Holbrooke went on to say that Pakistan was a great country and it had assumed vital significance all over the world. The entire world had acknowledged the unparalleled sacrifices rendered by Pakistan in the war on terror, he added.

“But it doesn’t mean that we’ve reached the end of the road. This is a tough, long struggle and much more needs to be done,” he said.

Referring to the sectoral dialogue, he said, “We are discussing real policy issues and how to work together to advance our common agenda”.

“This was the first time we have discussed water issues with Pakistan in such detail. Having provincial and federal water experts working together is essential to overcome Pakistan’s water scarcity issue,” he added. Responding to a question regarding development of Pakistan’s economy, he said, “We have discussed efforts to advance through Congress the Reconstruction Opportunity Zones (RoZ) legislation.”

He said Pakistan’s efforts to advance measures on labour rights and inspections for these ROZs also figured in the discussion.

“We also discussed efforts to promote business opportunities for Pakistani textile and apparel manufacturers. I am pleased to announce that the US will support Pakistani producers at a major trade show in New York, being held from July 13 to 15,” he said.

Holbrooke said, “We want to give the US business community a chance to learn that Pakistan is open for business, and we want to help you showcase the quality of your great Pakistani products.”

On trust deficit, he said Pakistan is most important ally in the war on terror and that we’ll never leave it alone in difficulties. He said terrorism is our common enemy and Pakistan had to face more losses as compared to any country.

Asked whom he would hold responsible if al Qaeda leader Osama bin Laden and Afghan Taliban chief Mullah Omar were hiding somewhere along the border between Pakistan and Afghanistan, Holbrooke said: “Many of their associates have been apprehended or killed. Even though these two people … are still at large, they are under intense pressure.”

Shah Mahmood Qureshi said the ongoing Pak-US strategic dialogue will be completed by July 9. He said seven rounds of dialogue have been undertaken while US secretary of state Hillary Clinton will visit Pakistan in July to kick off the second phase.

Holbrooke favoured bilateral engagement in the energy sector and said, “We only announced our initiatives on energy nine months ago when Clinton was here in October. Now the progress and measures put in place since Prime Minister Gilani convened your energy summit in April are clear”. He went on to note that power cuts have decreased in the urban areas “and we have seen a clear government commitment to put energy on a more solid financial footing”.