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

[ajpirzada]

I am eager to see whether the gas is able to cross Balochistan and reach main consumption centers as the tribes are known to blow up even the power lines.

If the pipeline is constructed then finally the balochis will have upperhand with rest of pak as any such attempt to stiffle them will lead to bombing pipeline.

well its actually Bugti area which like blowin up pipelines otherwise rest all is fine.
but yes gov does needs to take care of baloch ppl by workin agressively for their development. if this isnt done then this thing will spread from few tribes to many tribes which we definately dont want

 

[BaburCM]

india is not a party in the deal..
request to pakistani members on this forum , to be specific , it's not a Iran-Pakistan-India (IPI) pipeline , it's now a Iran-Pakistan pipeline...

Finally, luckyy gets the point.

 

[Neo]

Gazprom and IPI​

EDITORIAL (June 01 2009): Gazprom, the largest extractor of natural gas in the world and the largest Russian company, has indicated an interest in participating in the pipeline project carrying gas from Iran to Pakistan. Gazprom has more than adequate experience in the field. By end 2004 Gazprom produced 19.4 trillion cubic feet, or 85 percent of Russia's total gas production.

With reserves of 28,800 cubic kilometres, Gazprom controls 16 percent of the world's gas reserves and after acquisition of the oil company Sibneft, Gazprom, with 119 billion barrels (18.9 km3) of reserves, ranks behind only Saudi Arabia, with 263 billion barrels (41.8 km3), and Iran, with 133 billion barrels (21.1 km3), as the world's largest owner of oil and oil equivalent in natural gas. It supplies gas to European countries and the European Union as a whole gets about 25 percent of its gas supplies from this company. However concerns about funding of the Iran-Pakistan-India (IPI) gas pipeline were attributed to the Bush administration's resistance to this project which, in turn, resulted in drying up of many a possible financial source.

The Obama policy on this issue is not yet clear however it is relevant to point out that Gazprom has the necessary finances to turn this deal into reality as, apart from its gas reserves and the world's longest pipeline network (150,000 km), Gazprom also controls assets in banking, insurance, media, construction and agriculture.

There is speculation that Gazprom's interest in the IPI pipeline project maybe due to Russia's geo-political considerations: Russia's resistance to the American supported Central Asia South Asia Regional Electricity Market (CASAREM) project that is focused on supplying energy deficient South Asia from energy surplus Central Asia. It maybe recalled that Gazprom, with the backing of the Russian government, agreed to purchase all surplus energy from the Central Asian Republics as a countermove to US efforts to open Central Asia's energy to South Asia. This latest show of interest in the IPI by Gazprom, therefore, may be seen as a countermove to previous American efforts to stall the deal.

However, there is an additional advantage to Gazprom for supporting the IPI deal. In the words of Kommersant, a Russian daily, "this project (IPI) is advantageous to Russia since its realisation would carry Iranian gas toward South Asian markets so that in the near future it would not compete with Russian gas to Europe." Spokesman of the company, Kupryanov, has confirmed Gazprom's interest in the project.

From the perspective of Pakistan, Gazprom may well provide an opportunity to translate IPI finally into reality. Gazprom not only has the expertise to lay the pipeline but also has access to financing if the government of Pakistan requests it. The 950-kilometre pipeline to be laid inside Pakistan territory carries a cost of 1.2 billion dollars if the pipeline is 42-inch that precludes India's buy in into the project at some future date.

A 56-inch pipeline costing 2 billion dollars would enable India to come into the project anytime later. Russian-Indian relations have traditionally been good, almost comparable to ours with China, and Gazprom's involvement, if guaranteed, may reactivate Indian interest in the project - an interest that would pay Pakistan dividends in terms of annual transit fee of millions of dollars.

 

[AgNoStiC MuSliM]

Pakistan, Iran quietly sign gas deal in Turkey​

Wednesday, June 10, 2009

By Rauf Klasra

ISLAMABAD: Pakistan has finally signed the IPI gas pipeline deal with Iran in Turkey on June 5, in relative silence, days before the Iranian election and without any major discussion or debate within Pakistan on whether it was prudent to pay a high price compared to the one originally agreed by Tehran.

Details of the agreement obtained by The News reveal the PPP government was in an unprecedented rush to go through the deal while the Iranians took the deal to their parliament and demanded an upward revision of the gas price after their parliament rejected the original deal.

President Asif Zardari signed the Inter-governmental Framework Declaration with Iranian President Mahmoud Ahmadinejad on May 24, agreeing to the export of Iranian gas to Pakistan for domestic use. Export of Iranian gas to India was made conditional by adding the words “if applicable” in the May 24 declaration.

According to salient features of the gas sales and purchase agreement (GSPA), Pakistan has decided to purchase only 750 mmcfd gas for 25 years, renewable for another five years. Delivery point of the gas will be at the Iran-Pakistan border near Gwadar at a minimum pressure of 55 Barg (800 psig). The project on completion will be able to support 4,000 MW of power generation capacity.

The documents show Pakistan and Iran agreed in January 2007 on a gas price formula, which linked the delivered gas price at Pakistan’s border to Japanese Crude Cocktail (JCC), on an average crude oil parity of 45 per cent.

Interestingly, the Pakistani document reveals that “Iran took the plea that its parliament had decided that the price of gas to be exported should match the price being paid by its other buyers, namely Turkey and Armenia. Accordingly, Iran offered a revised price having an average crude oil parity of 78 per cent”.

The document defends the decision of allowing Iran 78 per cent parity instead of 45 per cent by arguing that “a rigorous analysis was conducted and it was concluded that imported natural gas even at the revised price remains the cheapest and most suitable fuel for power generation.” It claimed annual savings would range from $735 million to $1.2 billion for LNG, depending on the crude oil price if it was between $50 and $100 per barrel.

According to the documents, Iran has already completed a 900 km, 56 inch pipeline from Assaluyeh to Iranshehr and the remaining 250 km from Iranshehr to the border near Gwadar will be completed in less than two years. Pakistan has to construct an 800 km pipeline from the border, traversing along the Makran Coastal highway to Nawabshah.

But the interesting revelation was that while the size of the pipeline in Iran was 56 inches diameter, in Pakistan only a 42 inch pipe will be laid, which would cost around $1.25 billion in four years. So, any export of gas to India later through this pipeline was out of question and Pakistan and Iran have practically removed India from the IPI definition.

While documents say detailed and rigorous analysis was done, the fact was that in Pakistan the deal was never taken to any parliamentary forum or the house as done by Iran and it was never discussed.

Talking to The News, Petroleum and Natural Resources Secretary Mehmud Saleem Mehmud confirmed the deal was signed in Turkey on last Friday by the managing-directors of concerned gas companies of both the countries.

Saleem strongly defended the deal signed between the two countries, saying it was done after a lot of comprehensive negotiations between Iran and Pakistan. When asked why Iran had sold the gas at 78 per cent parity against its earlier offer of 45 per cent in Jan 2007 — a shocking raise of 33 per cent over the price offered hardly two years back, he replied actually, on the one hand, the demand for the Iranian gas was rising in the international market while, on the other hand, the Iranian parliament, too, had made it mandatory for its government to sell the gas at the price which was offered to Turkey and Armenia.

Although, Saleem did not say this, but his reply gave a clear idea that the Iranian government did not give any preferential treatment to Islamabad at the time of gas deal. When asked why the deal was made in such a rush as neither side waited for the new government in Iran after the presidential elections on June 10, the secretary replied the negotiations were going on for a very long time and there was nothing left to discuss.

He said the positive impact of this gas deal would be felt in the long run when cheap electricity would be produced in the country for domestic consumers and the rising requirements of the energy would be met to boost the industrial sector.

Pakistan, Iran quietly sign gas deal in Turkey

 

[ajpirzada]

very interestin...
meanin if india want to join in then they will have to lay another line in pakistan parallel to ours. this will not be economical for india in any case. though india is offically still a part of this pipeline but i guess we can now start callin it a 'peace pipeline'

 

[AgNoStiC MuSliM]

very interestin...
meanin if india want to join in then they will have to lay another line in pakistan parallel to ours. this will not be economical for india in any case. though india is offically still a part of this pipeline but i guess we can now start callin it a 'peace pipeline'

More than the economic impact of the pipeline is the strategic impact of strengthening ties with a very important neighbor of Pakistan's, especially as the Afghan government continues to act as an Indian proxy, and with karzai largely expected to win re-election.

The other widely known presidential candidate, Abdullah Abdullah, is also likely to be closer to India, given that he was a former close associate of Ahmed Shah Massoud.

 

[ironman]

According to salient features of the gas sales and purchase agreement (GSPA), Pakistan has decided to purchase only 750 mmcfd gas for 25 years, renewable for another five years. Delivery point of the gas will be at the Iran-Pakistan border near Gwadar at a minimum pressure of 55 Barg (800 psig). The project on completion will be able to support 4,000 MW of power generation capacity.

According to the documents, Iran has already completed a 900 km, 56 inch pipeline from Assaluyeh to Iranshehr and the remaining 250 km from Iranshehr to the border near Gwadar will be completed in less than two years. Pakistan has to construct an 800 km pipeline from the border, traversing along the Makran Coastal highway to Nawabshah.

But the interesting revelation was that while the size of the pipeline in Iran was 56 inches diameter, in Pakistan only a 42 inch pipe will be laid, which would cost around $1.25 billion in four years. So, any export of gas to India later through this pipeline was out of question and Pakistan and Iran have practically removed India from the IPI definition.

First of all CONGRATULATION..

Quoting some Facts:

1. Actually size of the pipeline doesn't matter. Transmitting gas under high pressure increases the volume. The news itself reveals that this pipeline is capable of carrying high pressure. Pipelines operating at pressure between 100 and 200 bars and from 65 to 130 bars have double and triple the capacity of pipelines with the same diameter working in the 50 to 75 range.(current proposal is 55).

2. Read carefully the pipeline to Pakistan border is already built with 56 inched pipes with a length of 900 km (Mr.Ahmadinejad or Mr.Mousavi or whoever it will to India).

The point is only rest of the pipeline will be the 42 inched one's. Obviously Pakistan requested for this to reduce cost and the end user India is not ready yet.She doesn't want this over sized dress to her minimal requirement(compared to India).

3. Also the former proposal to India was 22 bcm gas per annum and gradually raise this into 55 bcm per annum.That means building another parallel lines. (Remember India only has to build extra 900 km pipeline not the entire length).

4. Lastly please don't think that Iran would scrap the deal of 150 bcm potential future customer to the favour of 750 mcm customer because this is only a business.

 

[ajpirzada]

First of all CONGRATULATION..

Quoting some Facts:

1. Actually size of the pipeline doesn't matter. Transmitting gas under high pressure increases the volume. The news itself reveals that this pipeline is capable of carrying high pressure. Pipelines operating at pressure between 100 and 200 bars and from 65 to 130 bars have double and triple the capacity of pipelines with the same diameter working in the 50 to 75 range.(current proposal is 55).

2. Read carefully the pipeline to Pakistan border is already built with 56 inched pipes with a length of 900 km (Mr.Ahmadinejad or Mr.Mousavi or whoever it will to India).

The point is only rest of the pipeline will be the 42 inched one's. Obviously Pakistan requested for this to reduce cost and the end user India is not ready yet.She doesn't want this over sized dress to her minimal requirement(compared to India).

3. Also the former proposal to India was 22 bcm gas per annum and gradually raise this into 55 bcm per annum.That means building another parallel lines. (Remember India only has to build extra 900 km pipeline not the entire length).

4. Lastly please don't think that Iran would scrap the deal of 150 bcm potential future customer to the favour of 750 mcm customer because this is only a business.

wats ur point??
that india will have to build another pipeline startin from pak iran border?
well we are sayin the same thing.

 

[ironman]

wats ur point??
that india will have to build another pipeline startin from pak iran border?
well we are sayin the same thing.

I am saying that the already proposed plan to India was also not enough to fulfill the requirement. This eventually make possible by laying more parallel lines. The point is India will have to lay more pipeline in the former plan also. (The installation of further pipes will not cost the same as first because the land and infrastructure are already there).

 

[ajpirzada]

I am saying that the already proposed plan to India was also not enough to fulfill the requirement. This eventually make possible by laying more parallel lines. The point is India will have to lay more pipeline in the former plan also. (The installation of further pipes will not cost the same as first because the land and infrastructure are already there).

this is much more clearer than before.
thanks

 

[dbc]

I’d be more concerned about the Russian involvement (read Gazprom)– remember there is hardly any industry worth mentioning in Russia with the exception of Oil. Recall how aggressive Russia got when oil was over a 100$ a barrel. Russia cut off gas to Ukraine early this year when Ukraine refused to accept the revised pricing of $100 per 1,000 cubic meters which represented a 100% increase over the 2008 pricing.

India has several options; to her west she has several extremely friendly Oil & Gas rich Middle Eastern countries non friendlier than Oman and Qatar. To the east they have Indonesia, Malaysia, Brunei and Myanmar. The Indians are currently working on a deal with Myanmar(Bruma) for piped gas via Bangladesh (rejoice my Bangladeshi friends now Bangladesh can turn off India’s gas if India cuts her water supply – nice to have leverage!! ). They also have their own oil and gas, the brown fields of Bombay High has increased production by 32% using advanced recovery techniques such as extended reach drilling. Not bad for a field that started producing in 1976 and was expected to run out well before the start of the new millennium. The icing on the cake is a relatively recent deep sea find in the Krishna Godavari basin and another more recent discovery in the Deccan plateau, the only challenge with the former is the current capability of India’s premier engineering company is limited to a 1000 meters while the gas needs to be piped from 6000 meters from the ocean surface.
The funny thing is the gas that Pakistan will receive will likely come from Iran’s South Pars field – you’ll never guess who has equity in the South Pars field – India!!!

 

[ajpirzada]

Official: Iran, Pakistan in Talks with Gazprom over Gas Pipeline

TEHRAN (FNA)- A senior Iranian oil official said that Tehran and Islamabad is talking with Russian Gazprom about the company's participation in Iran-Pakistan gas pipeline.





"Both we and Pakistan are talking with Gazprom and we have agreed that Gazprom can be a partner (to construct) the pipeline inside Pakistan," Deputy Head of the National Iranian Oil Company (NIOC) for Investment Hojjatollah Ghanimifard said in an interview with Financial Times.

"I was in Russia, I had the pleasure of talking to high authorities in Gazprom and I proposed to them that this was in the interest of Pakistan and invited them to become involved," Ghanimifard said, who is also the Iranian oil minister's special representative in the pipeline talks.

Reminding that the Pakistani portion of the pipeline would stretch about 900 km, the Iranian official noted, "They liked this idea and accepted. We are going to see each other trilaterally in Tehran."

Earlier in May, Iranian and Pakistani officials exchanged documents of Iran-Pakistan gas pipeline deal in Istanbul, Turkey.

The 2700-kilometer-long plan was to send Iran's gas to the energy-hungry India and Pakistan to meet their needs but India evaded talks. Iran and Pakistan then declared they would finalize the agreement bilaterally if India continued to be absent in meetings.

According to the project proposal, the pipeline will begin from Iran's Assalouyeh Energy Zone in the south and stretch over 1,100 km through Iran. In Pakistan, it will pass through Baluchistan and Sindh but officials now say the route may be changed if China agrees to the project.

The gas will be supplied from the South Pars field. The initial capacity of the pipeline will be 22 billion cubic meters of natural gas per annum, which is expected to be later raised to 55 billion cubic meters. It is expected to cost $7.4 billion.

In a major breakthrough on March 20, the Pakistani government approved Iran's proposed pricing formula for gas supplies to the South Asian nation.

The pipeline project supposed to be completed by 2013.

Commenting on India participation, Ghanimifard told the paper that India still has an option to join the project, although the country has not yet been included in the gas pipeline project.

"When you're talking about a long relationship that will last decades, we cannot say that even though they are out for a few years, they will be out forever," he concluded.

Fars News Agency :: Official: Iran, Pakistan in Talks with Gazprom over Gas Pipeline

 

[K^se]

KARACHI, Pakistan, Aug. 25 (UPI) -- The Pakistani government moved forward with approval for the development and route of the Iran-Pakistan-India gas pipeline at a cost of $1.2 billion.
The Economic Coordination Committee at a conference in Karachi announced it gave its approval for the long-delayed IPI pipeline project.

Federal Minister for Petroleum and Natural Resources Syed Naveed Qamar announced that much of the pipeline would run through the southern province of Baluchistan.

"The pipeline will travel via Baluchistan to Kirthar, finally to reach Nawabshah, the hub from where the gas pipelines travel to the country," he said.

Pakistani Prime Minister Yousaf Raza Gilani had asked for considerations of the IPI route to include offshore routes to allay parliamentary concerns over the price and security of the gas pipeline, though lawmakers complained that consideration caused undue delays.

Qamar added the majority of the work on the pipeline would be conducted by foreign companies, Pakistani newspaper The Nation reports.

Islamabad is considering financial plans for the project that include government and private-sector funding as well as equity from stock offerings.

IPI was envisioned in 1989, though political, security and economic complications plagued development. The pipeline would run more than 2,000 miles from the South Pars gas field.

India's role in the project remains in doubt, though Qamar said he would give New Delhi special consideration should it reconsider.

"India has withdrawn from the project by itself, but if it wants to join the project in future, a separate pipeline will be laid for this purpose," he said.

Source:Can't post because I'm a new member lol, but you can google it..

-Sure is a slap in the face of U.S trying to pressure Pakistan out of the Gas Pipeline project prior to this. Also now India is also going to invest in and Energy plant that is worth 5 billion dollars, It's probably safe to say their won't be any strategic offensive attacks on Iran in the months to come.. Because so many regional powers have there interests their..

 

[TOPGUN]

I think its good news for all three countires!

 

[Sprint]

KARACHI, Pakistan, Aug. 25 (UPI) -- The Pakistani government moved forward with approval for the development and route of the Iran-Pakistan-India gas pipeline at a cost of $1.2 billion.
The Economic Coordination Committee at a conference in Karachi announced it gave its approval for the long-delayed IPI pipeline project.

Federal Minister for Petroleum and Natural Resources Syed Naveed Qamar announced that much of the pipeline would run through the southern province of Baluchistan.

"The pipeline will travel via Baluchistan to Kirthar, finally to reach Nawabshah, the hub from where the gas pipelines travel to the country," he said.

Pakistani Prime Minister Yousaf Raza Gilani had asked for considerations of the IPI route to include offshore routes to allay parliamentary concerns over the price and security of the gas pipeline, though lawmakers complained that consideration caused undue delays.

Qamar added the majority of the work on the pipeline would be conducted by foreign companies, Pakistani newspaper The Nation reports.

Islamabad is considering financial plans for the project that include government and private-sector funding as well as equity from stock offerings.

IPI was envisioned in 1989, though political, security and economic complications plagued development. The pipeline would run more than 2,000 miles from the South Pars gas field.

India's role in the project remains in doubt, though Qamar said he would give New Delhi special consideration should it reconsider.

"India has withdrawn from the project by itself, but if it wants to join the project in future, a separate pipeline will be laid for this purpose," he said.

Source:Can't post because I'm a new member lol, but you can google it..

-Sure is a slap in the face of U.S trying to pressure Pakistan out of the Gas Pipeline project prior to this. Also now India is also going to invest in and Energy plant that is worth 5 billion dollars, It's probably safe to say their won't be any strategic offensive attacks on Iran in the months to come.. Because so many regional powers have there interests their..

My two cent take on this issue; India joining this project in near future is not going to happen. The logic is simple, India would not be interested in the pipeline until there is a pro-US govt in Iran (coz. even with the word from Pakistan govt and the pipeline company (US based) in the past about the securiety of pipe line India was reluctant in joining) so at least we have to wait till 2013 if not longer. So until then India would be happy to spend $5 or $10 billion to develop energy fields in Iran and bring this gas via sea route.

Second I read in some newspaper today that India is going to construct 5000 MW power plant (gas based) in iran and would import electricity from iran (only limitation is that my severely challenged intellect was unable to understand what it meant. My sincere apologies for being dumb ***).