Iran, Pakistan to launch gas pipeline project

[A.Rafay]

 

[bala]

e. Subsidize solar panels & encourage investment in wind power.

Pakistan is a developing country not developed.

You do not want to make daft decisions like solar and wind powers - they are for the developed countries.

It costs a lot of money for installing renewable energy means. They are also not so stable and used as secondary. The solar will only work in Pakistan in summer months. But the wind turbine will be useless in summer there is no wind in Pakistan in summer months (maybe in winter months?) summer is just humidity.

The UK has not stil gone thorugh with this fully - the costs on the users are enormous.

A developing country neads nuclear and coal.

 

[niaz]

Pakistan is a developing country not developed.

You do not want to make daft decisions like solar and wind powers - they are for the developed countries.

It costs a lot of money for installing renewable energy means. They are also not so stable and used as secondary. The solar will only work in Pakistan in summer months. But the wind turbine will be useless in summer there is no wind in Pakistan in summer months (maybe in winter months?) summer is just humidity.

The UK has not stil gone thorugh with this fully - the costs on the users are enormous.

A developing country neads nuclear and coal.

Sir,

I would tend to agree that Pakistan does not have too many place ideal for wind power. However. some people that I have discussed renewable energy options with, tell me that there is a corridor between Keti Bandar and Gharo which could produce sufficient electricity to fulfil Sindh requirements.

Solar panels are a different matter altogether. You may not know it but cost of solar panels has been coming down thanks to the Chinese.

Solar Panel Prices Continue 'Seemingly Inexorable Decline' | ThinkProgress

Wholesale Solar Panel Price-Buy Solar Panel Price lots from China Solar Panel Price wholesalers on Aliexpress.com

I go to Cyprus often for holidays and find solar panels everywhere. Cypriot target of solar power including both photovoltaics and concentrated solar power is combined 7% of electricity by 2020, which will make Cyprus one of the top ones in Europe.

Pakistan & India with about 300 days of sunshine each year are ideally suited for solar panel installations for home use.

Coming back to topic of IP pipeline, let us wait & see how it develops. In my humble opinion, it is not going to be completed in the near future. Even if it is, CIA will ensure that BLA will keep blowing it up every other day. Like it or not, this is the ground reality.

 

[ajpirzada]

Going-away present?: Pakistan looking at LNG import from Qatar

ISLAMABAD: Pakistan is now contemplating the import of liquefied natural gas (LNG) from Qatar, after the Supreme Court took suo motu notice of the $25 billion LNG contracts bid and award process.
The government decided to strike a LNG deal with Qatar on a government-to-government contract ahead of expiration of the incumbent regime’s five-year tenure.
Pakistan and Qatar had already signed a memorandum of understanding to import LNG, but the process hit roadblocks over a pricing row after the latter demanded a price of $18 per million British thermal unit (mmbtu).
“Now, Qatar has cut the offered LNG price and the cabinet, scheduled to meet on Wednesday (today), may be requested to import two million tons of LNG per annum from Qatar on a government-to-government basis,” said Adviser to the Prime Minister on Petroleum and Natural Resources Dr Asim Hussain, while addressing a press conference on Tuesday.
Responding to a question regarding United States’ opposition to the Iran-Pakistan gas pipeline project, he said that different countries like Iraq and Kuwait were importing gas from Iran, whereas India and China were importing oil from the sanctioned-hit country.
“It is incomprehensible why the US is opposing the IP project when other countries are also importing gas from Iran,” he said, adding that the cost of the gas pipeline project stood at $1.35 billion. Initially, 150 million cubic feet of gas per day (mmcfd) will start from Iran, which will be enhanced to 750mmcfd.
“We have a gas sale purchase agreement for supply of 750mmcfd that could be increased to over one billion cubic feet per day of gas if the situation calls for it,” Hussain said.
However, he said that there was a hurdle in awarding the contract for laying Pakistan’s portion of the pipeline, but did not specifically mention what it was.
To finance the gas import project, the government can generate Rs40 to Rs50 billion per annum through the gas infrastructure development cess (GIDC).
If the current circumstances continue, Pakistan and Iran will use a barter trade mechanism as the mode of payment, exploiting a loophole in the imposed sanctions. The consumers will have to bear the cost in weighted average mode, he said
Moreover, Pakistan and Iran were scheduled to sign a MoU on establishing an oil refinery in Gwadar, which will be constructed by Iran, with a refining capacity of 400,000 barrels per day.
“After the announcement of the new petroleum policy, the government auctioned 60 new blocks with $372 million worth of work units, of which the Oil and Gas Development Company won 29 blocks,” he said, and went to say that exploration activities were on the rise after the implementation of the new policy as over 60 rigs were set for exploration. He said that one ship had reached for seismic survey for offshore drilling.
“We hope to find gas reserves offshore larger than the onshore fields like Sui and Qadirpur Pakistan has currently,” Hussain said.
The government was also set to divide gas utilities to minimise unaccounted for gas (UFG) losses and to bring reforms in accordance with the international standards.
Recently, United Energy Pakistan, which held a no objection certificate, will start a three dimensional seismic survey to explore offshore oil and gas reserves. The petroleum ministry had allowed the company to initiate survey in three blocks off the coast.
The minister argued that to terminate the prevailing energy crisis, the country needs to undertake the IP project, Turkemenistan-Afghanistan-Pakistan-India (TAPI) pipeline, LNG imports and liquefied petroleum gas air mix projects.
Furthermore to control the fertiliser prices, the government had arranged provision of gas to the fertiliser plants directly from the fields. The step will also help reduce prices of agricultural products and boost yields.
“The government has announced incentives for oil refineries that will invest $2.4 billion till December 2015 to upgrade plants to produce Euro-2 compliant diesel.
Published in The Express Tribune, March 13th, 2013.

Going-away present?: Pakistan looking at LNG import from Qatar – The Express Tribune

IP seems to be a fair deal to me.

 

[Argus Panoptes]

Going-away present?: Pakistan looking at LNG import from Qatar

...................

Going-away present?: Pakistan looking at LNG import from Qatar – The Express Tribune

IP seems to be a fair deal to me.

A fair deal? I disagree, but then again, differing opinions are what make for interesting discussions. We shall soon see just how this pipeline helps or complicates our energy situation.

Please do read the following and try to explain how the price at the IP border has increased as the project has evolved:

===========================

http://www.epw.in/system/files/pdf/...of_IranPakistanIndia_Natural_Gas_Pipeline.pdf

5 Negotiations over Price
The pricing for natural gas supply from Iran, apart from security
concerns, has been a major sticking point in the IPI pipeline negotiations.
While the Iranian point of view was to align the natural
gas price to the price of LNG, India and Pakistan proposed a more
realistic approach that would keep the piped gas economical for
investment in the pipeline infrastructure. The volatility in the
crude oil price, which has scaled new peaks over the last couple
of years, took the leverage away from the buyers. From the Indian
point of view, transportation charge and transit fee are the additional
issues to be negotiated bilaterally with Pakistan.
The commercial interests from the three countries in the IPI
pipeline are being extended through three representative
agencies
– the National Iranian Gas Export Company (NIGEC),
Interstate Gas Systems Private and GAIL. Iran, India, Pakistan
have jointly appointed Gaffney, Cline and Associates (GCA), a UK
based consultant, to provide an independent professional view
on the appropriate price to be charged for the natural gas at the
point where the pipeline crosses the border between Iran and
Pakistan. A pricing methodology based on the netback from price
of LNG at Japan has been agreed upon by the three countries. The
GCA is to arrive at a price for natural gas after taking into account
transportation up to Iran-Pakistan border.
The GCA based its netback calculations on the following:
(a) cost of LNG in Japan; (b) LNG shipping cost from the Persian
gulf to Japan; (c) cost of gas liquefaction in Iran; (d) cost of gas
processing for LNG mode and pipeline mode; and (e) estimated
pipeline transportation cost from Assaluyeh to the Iran-Pakistan
border [Infraline 2007b].
During the fourth trilateral JWG meeting held at Tehran on
January 24-25, 2007, net back calculations and price derivation
done by GCA were discussed. In response to reservations by India
and Pakistan, Iran suggested a formula for gas price up to
Pakistan-
Iran border during the JWG meeting on February 22-23,
2007 in Islamabad. The agreed formula links the price of delivered
gas to the price of JCC. While Iran and Pakistan agreed to
the proposed formula subject to approval by the respective governments,
India agreed to respond to pricing formula with in four
weeks. The formula for the gas delivered at the Iran-Pakistan
border is as follows (ibid):
For JCC price less than $ 30/bbl
P = 1.54 + 0.05* JCC;
st JCC < 30
For JCC price in the range $ 30 &#8211; $ 70/bbl
P = 1.15 + 0.0633* JCC;
st 30 &#8804; JCC &#8804; 70
For JCC price greater than $ 70/bbl
P = 2.06 + 0.05* JCC;
st JCC > 70
where p denotes the price of delivered gas at Iran-Pakistan border
(in $ per MMBtu) and JCC &#8211; price of Japan custom cleared
crude (in $ per barrel).
At the prevailing JCC price of about $ 70/bbl, the natural gas
supplies at the Iran-Pakistan border would be $ 5.04/MMBtu.
Adding a normative transportation and tariff charge, the cost
insurance and freight price of the gas at the Indian border would
be approximately $ 5.84/MMBtu. The associated assumptions and
their reasonableness are further discussed in Section 7. This is
lower than the $ 7.17/MMBtu which Tehran sought in mid-2006
but higher than the Indian plan to peg the gas at $ 4.25/MMBtu.
The merits of the landed price of natural gas for India are examined
later in Section 7. The other two important issues, namely,
the transportation charges and transit fee to be paid to Pakistan
are discussed below.

 

[bala]

1) Sir

2) There is a corridor between Keti Bandar and Gharo which could produce sufficient electricity to fulfil Sindh requirements.

3) it is not going to be completed in the near future.

4)Even if it is, CIA will ensure that BLA will keep blowing it up every other day. Like it or not, this is the ground reality.

1) Dont call me "Sir" I am normal person just like you am nothing special or senior/military personnel

2) You need a lot more than a simple corridor for wind power - you got to look at the costs.

3) Most importantly, it is funny how it is all completed on Iranian side - about 1100KM is it? Can't remember the full figure. It is the Pakistani side which needs finishing off - and if it isn't finished off its due to the corrupt Pakistan system nothing to do with sanctions or Iran. It is good that the Iranians are helping to finish. It is a lot to finish I have calculted it and it is roughly 1mile a day of pipeline within the given deadline. And 1 mile a day of pipeline is A LOT!

4) Again, this is due to Pakistan corruption - people do anything for money in Pakistan. This is why I haven't been there for 13 years and do not wish to return there. However, I do support any advancements the country makes. I rather go to Iran to be honest they seem to have a better system!

 

[Abu Zolfiqar]

Peace gasline opposers can

 

[Yaduveer]

Ek Zardari Sab par Bhari ...!

Maan Gaye Zardari ke Dimag ko ... Yun hi sab par bhari nahi hai ...

Now forget about all corruption issues..

He has launched Pipeline just 7 days before dissolution of National assembly..

Whole Pakistan is going Gaga about it ...even opposition too.

It is not just 4000MW of electricity but standing against USA that is match winner.

 

[AZADPAKISTAN2009]

Congrats to Muslim countries of Pakistan and iRAN

When is the Oil pipeline coming from Iran , all that unused oil , Pakistan can get good rate and also help friends in Iran keep money flowing in and we also got tones of crops to sell

 

[cirr]

Congratulations are in order&#65281;

Now let's do some serious business&#12290;

Hope the pipeline extends to China one day and together with the Gawdar port&#65292;make Pakistan the link between China and the Gulf Region&#12290;

 

[notorious_eagle]

the calculation that gas load-shedding is likely to increase further. we need this gas. prices can be revisited

To effectively deal with the looming energy crisis Pakistan desperately needs to complete one of the three available options, according to officials: (i) IP, (ii) import of Liquefied Natural Gas (LNG) from Qatar; and (iii) through Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project. The gas price under IP project would be $11 per Million British Thermal Unit (MMBTU), for TAPI $13 per MMBTU and Liquefied Natural Gas (LNG) at $18 per MMBTU.

IP pipeline project: Pakistan to pay $6/MMBTU more for gas price

 

[t-birds]

The visit was Zardari's second to Iran in a fortnight and came after officials said a consortium would start work on the pipeline on Pakistani territory despite the US sanctions threat.

 

[SatishChandra07]

All the best. Good move by zardari, he is a visionary leader, may he be re-elected for a second term

 

[ajpirzada]

thats fine. but wen u do cross comparison across various different options we have got, apparently it is the cheapest we can get.

 

[haviZsultan]

One hell of a welcome step indeed. Pakistan needs a strong foreign policy and needs to retain its independence in the world today. Having beneficiail, fruitful relations with Iran is a first step. Also Iran is the first nation to recognize Pakistan.