Iran wants Pakistan to revive gas pipeline project

[Kaniska]

It is strange that Pakistan is not using this oppertunity to buy Oil from Iran...India has some reason and execuse in the name of Pakistan....But what is Pakistan's execuse for this project...At least for Pakistan, your CPEC indistry can be supplied with Iran's energy pipeline and then you can extend it to China to make it beneficial to all countries.

 

[AZADPAKISTAN2009]

If Musharaf was not removed in 2008 , the project would have been completed by 2014
US-Canada have a similar project for oil pipeline which Trump approved with no issues or reservation

Don't see what the fuss is about this project completing and running it is a civilian project for gas and power

 

[niaz]

US sanction isn't much of an issue.

It's big daddy Saudi Arabia.

Sorry to disagree, it is all due to non-availability of funds because of the threat of US sanctions.

Quote
IRAN-PAKISTAN PIPELINE NOT VIABLE DUE TO U.S. SANCTIONS’

FEB 26 2014

BY AFP

Atta Kenare—AFP

ISLAMABAD’S PETROLEUM MINISTER SAYS WORK ON PIPELINE NOT POSSIBLE BECAUSE IT FALLS UNDER U.S. SANCTIONS.

Pakistan on Tuesday said that work on a pipeline to import gas from Iran could not proceed because of sanctions imposed by the United Sates and the European Union on Tehran.

The Iranian side of the $7.5-billion project is almost complete, but Pakistan has run into repeated problems paying for the 780-kilometer section to be built on its side of the border. Last year, Pakistan had asked Iran for $2 billion in financing to build its side of the controversial gas pipeline.

Iran has the second largest gas reserves in the world but has been strangled by a Western embargo that has seen its crude exports halved in the past year. U.S. officials had earlier warned that the Iran-Pakistan pipeline project would risk triggering sanctions aimed at Iran.

Pakistan’s petroleum minister Shahid Khaqan Abbasi said on Tuesday that work on the pipeline was not possible because it falls under the sanctions imposed by the U.S. and EU. “The work on the Pakistan Iran gas pipeline project is not possible because of the sanctions imposed by the U.S. and EU,” Abbasi said. “This project is affected by the sanctions imposed,” he said without elaborating on how the sanctions could derail the project.

Iranian Oil Minister Bijan Zanganeh said that his country was ready to go ahead with the pipeline agreement. “Iran is committed to this gas agreement but until Pakistan has not officially relayed its stance, we cannot react and make a decision,” he was quoted as saying Tuesday by the Mehr news agency. In late October Zanganeh had said he had “no hope” for the project, citing financial problems.

The long-delayed pipeline that would link the two neighbors was planned to ease Pakistan’s chronic gas shortages. Iran currently produces around 600 million cubic meters of gas per day, almost all of which is consumed domestically due to lack of exports. Its only foreign client is Turkey, which buys about 30 million cubic meters of gas per day.

The Karachi Stock Exchange took fright when the countries’ then-presidents Mahmoud Ahmadinejad and Asif Ali Zardari inaugurated the much-delayed section of pipeline in March last year. Spooked by fears of U.S. sanctions, the main index slumped almost 2.5 percent.

Pakistan has severe gas crisis as natural gas supply to homes and factories almost hit the dead end in winters and the consumers have to rely on the Liquid Petroleum Gas (LPG) cylinders. The compressed natural gas (CNG), used as fuel in cars to improve environment and reduce cost also shuts down for three days a weak during the tight supply months in the most-populated Punjab province. Many Pakistanis have converted their cars to run on CNG, depending on it as a cheaper alternative to petrol and diesel.

Unquote

http://newsweekpakistan.com/iran-pakistan-pipeline-not-viable-due-to-u-s-sanctions/

 

[Clutch]

How can the Pakistani minister say the pipeline from Iran is at risk of sanctions if India can use Chabahar for import export?

It's a bad strategy of appeasement by pakistan

 

[niaz]

How can the Pakistani minister say the pipeline from Iran is at risk of sanctions if India can use Chabahar for import export?

It's a bad strategy of appeasement by pakistan

Hon Sir,

Firstly, any ship can go to Iranian ports. Only that ship wouldn’t be allowed to enter US waters if she does.

Secondly, Pakistan was not importing gas from Iran before the sanctions, this is a brand new venture.

Thirdly, when US applied sanctions; India, South Korea & Japan got special dispensation. These countries were allowed to import 50% of their pre-sanction volume. Indian used to import about 400,000 bbl per day of crude from Iran prior to 2011. Understand India reduced the imports by 25% only. However payment for the oil remained a problem.

"The Indian government is seeking to pay the $6.5-billion debt and is looking to prepare the banking activities. The receiving bank for this money will be Turkey's Halkbank, and the money will be paid in euros," news agency Fars quoted Indian Ambasador Saurabh Kumar as saying in Tehran. Iran has been demanding faster payment of oil dues and in euros. India has put the process into motion ahead of Prime Minister Narendra Modi's May 22-23 trip to Iran.


Read more at:
//economictimes.indiatimes.com/articleshow/52285579.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

NEW DELHI, June 19 (Reuters) - India’s Bharat Petroleum Corp has made its first payment for Iranian oil in rupees, two industry sources said on Tuesday, becoming the first refiner to use a payment channel that skirts tightening Western sanctions on Iran’s trade. India is Iran’s second-largest oil buyer, but has struggled to find ways to pay for the oil as Western sanctions curb international financial payments destined for Tehran’s coffers.

http://www.reuters.com/article/indi...ts-for-iran-oil-sources-idUSL3E8HJ3E520120619


Finally, we have to accept the fact that at $2.1-trillion, Indian is the world’s seventh largest economy. Whether we like it not, India carries a lot more weight with the US than us. Even our neighbouring countries such as Kuwait, Dubai, Iran & Afghanistan regard India higher than Pakistan.

It is not a matter of appeasement, it is a question whether Pakistan can live under US Sanctions?

 

[Vijyes Yechury]

US dollars is not a problem at all. US is not giving free dollars to anyone, anyways. In fact, it is Saudi that is heavily funding Pakistan.

The trade deficit of Pakistan is over 30 billion dollars and remittance is just 19 billion. In addition to the 11 billion dollars, Pakistan is also buying military goods from China worth a few billion dollars a year. Who is paying for the 10-15 billion dollars of Pakistan? Now, CPEC repayment will also begin and Saudi has pitched in to invest in it on behalf of Pakistan.

I am pretty sure the tens of billions of dollars from Saudi Arabia every year is something that is holding down Pakistan from allying with Iran. Saudis will be very angry if Pakistan backstabs it and joins Iran. Also, I think Qatar may be selling its gas at cut throat prices to Pakistan on the behest of Saudis.

So, Saudis are really taking good care of Pakistani economy and foreign exchange. It will be unwarranted to challenge Saudi Arabia

 

[Amir Ijaz]

It should be revived

 

[GDP Adil Khan Niazi]

Not only we should revive the gas pipeline project but also should start making our bond strong i.e. bilateral ties.

Love hate relationship, love-love relationship, or hate-hate relationship! Its all there and it depended on the circumstances. They were on the same side, and on opposite sides, depending on who was in power. Iran helps Pakistan, Pakistan reciprocates in same vein and sometimes in a different way. The history of relationship between them is quite varied and has many shades.

We can increase It can be through trade, through projects. There must be official visits of officials of both the countries. Sitting together discussing future projects, ties since Iran is very important when it comes to play role in Asia. But if we see the other part Saudia has pushed us on a point from where coming back is possible but is difficult, involving us in too much proxy war thing regarding the Qatar, Yemn, Iraq, Iran conflicts because of Sunni Shia Fasad.

Well we must improvise our foreign policy as well because we should tell Saudia that our dealing with you is different and our dealing with Iran is different if both of you have problems you must solve yourself don't try to make us the victim of your problems.
In my opinion Pakistan must tell Saudi government that Iran is as important to us as you are. Our stance should be clear but we should make our foreign policy better i must say again and again not only in case of Iran - Pakistan relation there are other Islamic countries as well with whom we should make our bond strong.

Just like COAS Bajwa is on the official tour of Iran, more government officials should also do the same. Moreover,
COAS Bajwa visits Islamic Revolutionary Guard Corps during Iran visit.

 

[Inception-06]

The biggest enemy of such pipelines in Balochistan are the terrorista a la BLA ! Their hobbie is to blow up bridges, pipelines and railway tracks !

 

[Kao Boy]

There was a day when Pakistan wanted Iran to invest in the whole project themselves and no penny spent from Pakistan on a grounds of strategic partnership improvement. If goes live which I think should wound not earn anything profitable just backlog of payout from Islamabad to Tehran

 

[Vijyes Yechury]

There was a day when Pakistan wanted Iran to invest in the whole project themselves and no penny spent from Pakistan on a grounds of strategic partnership improvement. If goes live which I think should wound not earn anything profitable just backlog of payout from Islamabad to Tehran

Even India wanted a pipeline from Iran via Pakistan. Even today India wants that. The compression, liquefaction and shipping of gas is expensive. As a result, currently India is forced to set up fertiliser factory in Iran itself to make ammonia. If Pakistan allowed the pipeline, India would have benefited economically while Pakistan could also take some commission

 

[Spring Onion]

US dollars is not a problem at all. US is not giving free dollars to anyone, anyways. In fact, it is Saudi that is heavily funding Pakistan.

The trade deficit of Pakistan is over 30 billion dollars and remittance is just 19 billion. In addition to the 11 billion dollars, Pakistan is also buying military goods from China worth a few billion dollars a year. Who is paying for the 10-15 billion dollars of Pakistan? Now, CPEC repayment will also begin and Saudi has pitched in to invest in it on behalf of Pakistan.

I am pretty sure the tens of billions of dollars from Saudi Arabia every year is something that is holding down Pakistan from allying with Iran. Saudis will be very angry if Pakistan backstabs it and joins Iran. Also, I think Qatar may be selling its gas at cut throat prices to Pakistan on the behest of Saudis.

So, Saudis are really taking good care of Pakistani economy and foreign exchange. It will be unwarranted to challenge Saudi Arabia

Can you please post the breakdown of Saudi FUNDING to Pakistan??? ANd also some proof?

 

[Sharpshooter12]

The problem with IP pipeline is financing. Any entity financing this venture is liable to face sanctions from US.

Even NBP when asked to finance it, agreed initially but declined later on as it has branches in the US. Same is the case for the Chinese banks, there is a risk that any bank that finances this pipeline will have to say good bye to its business interests in the US. And US is a much bigger and more lucrative market than Iran or Pakistan and hence no bank is ready to finance the project.

 

[Musalman]

First of all Qatari gas is cheaper than the IP gas line formula. Qatari is a % of Brent and IP is mix of Japanese crude oil mix.
We already have two LNG terminals, with a capacity of 1.2bcfd.At moment we do not require more gas especially when two to three more terminal are in pipeline.
Iranian pipeline would have been a better choice had there been no terminal installed. But Qataris are better business men than the Iranian

 

[Awan68]

Should this happen, YES very much.

and IF this happens, that means that Iran and Pakistan have formerly broken all hope and lines with the US.

Until such time, US will NEVER EVER allow such a thing to happen

If a country forces us to abandon deals that would bring about the economic prosperity of Pakistani people to a certain degree than maybe we shouldnt have any ties with such a state in the first place.