Major development in Iran-Pakistan Gas Pipeline project, amended agreement reached

[Murgah]

 

[ARMalik]

A bit too late as usual by the incompetent people on both sides. The disruption in ME to oil and gas supplies have already begun.

 

[TNT]

Too late, Pakistan was running surplus on gas this summer. Had to shut down few local productions coz of imported LNG. Still its a good project for future.

 

[313ghazi]

Good news. We should be negociating these sorts of deals now, rather than when we are trying to grow and we don't have enough energy to meet our needs.

https://propakistani.pk/2019/09/17/...yofQiYgdLIUUlsKazvTyoSsUnCkSCqz3PVDAJx08HpbhE

Pakistan and Iran have signed a new contract in which the former won’t be liable to pay billions of dollars in penalties for delaying its side of work on the Iran-Pakistan gas pipeline.

The Inter-State Gas Systems (Pvt) Limited (ISGS) of Pakistan and the National Iranian Gas Company (NIGC) of Iran inked the revised agreement on Monday. The new agreement says that the two neighboring countries will work collaboratively to find a viable solution to the project.


Iran-Pakistan gas pipeline also called the Peace Pipeline, or IP Gas is incomplete due to international sanctions on Iran. The project was started in 1995 and the neighboring countries were also interested in it. However, work on the project began in March 2013, 18 years after it was scheduled to start.

Pakistan was due to complete the project by December 2014 but missed the deadline due to international pressure. In the same year, former Petroleum Minister Shahid Khaqan Abbasi informed the National Assembly that the project was off the table due to sanctions on Iran.

In 2018, Iranian authorities threatened to take up the matter with the international court of justice and demand compensation. In February this year, Pakistan formally received a notice from Iran that they were moving to an arbitration court against Pakistan.

However, the two countries held a meeting and decided to revise the contract and enhance the deadline by another five years.

Under the new contract, Pakistan has to complete the project by 2024 to buy 750 million cubic feet of gas per day from the neighboring country.

 

[AsifIjaz]

When IP pipeline project is implemented we can convert all the furnace based power plants to imported natural gas... Wud save us decent money.
What we need is to renegotiate the rates too... As per the original contract if pakistan was able to get another project signed in a stipulated time at lower rates then renegotiation of rates with iran was possible as well.. This actually happened when TAPI was signed.. Hence we need to revisit the IP gas line rates as well.