Pakistan Confirms China Pullout From Pipeline Project, Eyes Other Options

[beggingwalker]

How are the costs calculated?

How many kilometers of pipe line?

700million is the cost inside pakistan.iran have already constructed inside and only problem is pakistan.
This pipeline have zero value

 

[illusion8]

If feasibility is the issue than makes sense why India pulled out long back, but to make it work Pk will have to keep it bilateral between Pk-Iran and try and generate funds from its own sources because any country stepping forward to finance this will come under immense pressure.

 

[samrat]

If feasibility is the issue than makes sense why India pulled out long back, but to make it work Pk will have to keep it bilateral between Pk-Iran and try and generate funds from its own sources because any country stepping forward to finance this will come under immense pressure.

India pulled back mainly due to trust issues with Pakistan.

 

[BATMAN]

What happened to Pakistan's gas?

Audit shows, it has been vented in air by Zardari regime.

Pakistan committed economic suicide when they choose Zardari over Musharraf.

700million is the cost inside pakistan.iran have already constructed inside and only problem is pakistan.
This pipeline have zero value

Problem is Pakistan regime.

The construction inside Pakistan was supposed to start in parallel to Iran but some people get rich in delaying it.

700million is exaggerated figure, but it purely depends on length.

If it is reaching to China than 700 million is Ok

 

[kollang]

hard time is when we understand who is the real friend and who is the real enemy

 

[Rajaraja Chola]

Higher than mountain.........

And deeper than the deepest part of oceans......

 

[Emmie]

I think cost of the pipeline is about 250 million dollars..

 

[illusion8]

India pulled back mainly due to trust issues with Pakistan.

Its a package deal, mainly depends on whether Pk can guarantee safety of Indian investment which we thought was not sufficient. I think the only country that can make it work is India. But the trust deficit is a hindrance and a liability.

I think the growing Indo-Pak relation will see a re opening of this issue, No harm in Pk again asking India to join the project.

 

[sachin@india]

From a pragmatic point of view, Chinese bank did the right thing.... too much risk involved, previously they also backed from Thar coal project.

 

[samrat]

Its a package deal, mainly depends on whether Pk can guarantee safety of Indian investment which we thought was not sufficient. I think the only country that can make it work is India. But the trust deficit is a hindrance and a liability.

I think the growing Indo-Pak relation will see a re opening of this issue, No harm in Pk again asking India to join the project.

Its a huge risk considering the nature of Indo-Pak relations. After spending a huge part of 8 billion dollars (reported cost of IPI pipeline) and other billions converting our industries/powerplants/cars etc to run on gas, we will be in no position to face a blockade from Pakistan of our gas. Its better we stick to ships for the meanwhile.

Audit shows, it has been vented in air by Zardari regime.

Pakistan committed economic suicide when they choose Zardari over Musharraf.

What are you saying that Zardari just burned away the gas.

Problem is Pakistan regime.

The construction inside Pakistan was supposed to start in parallel to Iran but some people get rich in delaying it.

700million is exaggerated figure, but it purely depends on length.

If it is reaching to China than 700 million is Ok

700 million is a low figure. IPI pipeline costs 8 billion dollars.

 

[shuttler]

ICBC is a listed banking corporation and they have to answer to their shareholders for making decisions in this high risk project (an impending war is hanging overhead in the region)! I wonder if the Asian Development Bank is willing to help out. ICBC is just one of the many resorts that the project manager is seeking. Good luck!

 

[Desert Fox]

they veen need their pipeline to be financed??, beggars

display your real flags, or are you ashamed to do so?

Pakistan committed economic suicide when they choose Zardari over Musharraf.

Musharraf isn't any better.

 

[samrat]

hard time is when we understand who is the real friend and who is the real enemy

There are no permanent friends or permanent enemies in international politics, there are only permanent interests.

 

[sachin@india]

Chinese bank ditched the Best friend

As much as we like to delude ourselves into believing that China is an all-weather friend who will stand by us no matter what, the alliance between the two countries is one that is based, like all alliances, on convenience and self-interest. There are now increasing signs that, in many areas, these interests are now diverging. The Industrial and Commercial Bank of China, which had previously committed to financing the Iran-Pakistan gas pipeline, has now decided to back off, most likely because another alliance — that with the US — took precedence over the alliance with Pakistan. The US has already threatened to impose sanctions on any company that deals with Iran and it appears that the Chinese have caved in. The former has also worked overtime to ensure that the Iran-Pakistan gas pipeline does not become a reality and its efforts do not seem to have been in vain.

Fortunately, for Pakistan there are possible alternatives to finance the project. The second-lowest bidder for the contract, which is a consortium that includes local firms and foreign firms with experience working in Pakistan, can be a possible alternative to finance the project. Although this option will end up costing the government more, the Iran-Pakistan pipeline is so vital to the country’s energy needs that the extra cost can be overlooked. Other options available include cutting out the middlemen and dealing directly with friendly governments or even coming to a barter agreement with Iran where we would exchange wheat in return for construction help for the pipeline. A gas levy is also reportedly being considered but, given recent gas price increases, that option may not be palatable to the Pakistani people.

As for China, we need to prepare for a time when our alliance with them is severely undermined by growing relations between China and India. Trade between the two countries has now reached nearly $50 billion a year and is only expected to increase substantially in the next few years. For an alliance that started only because the two countries shared a mutual suspicion of India, this spells trouble. Relying on only one ally is never a good idea, and in the case of China, it is becoming increasingly problematic.

Published in The Express Tribune, March 15th, 2012.

 

[lem34]

Maybe Chinese want Russians to take it. After all China and Pakistan are close allies. China has been trying to bring Pakistan closer to Russia. I think its better for Russians and Iranians to assist. This shows these 4 nations interests converge and a link up is inevitable despite our crappy leaders that look to west.

http://www.defence.pk/forums/world-...y-iran-pakistan-gas-pipeline.html#post2699523


Russia, Iran offer to lay Iran-Pakistan gas pipeline
Tuesday, March 13th, 2012 9:39:36 by Fayyaz Yaseen

Russia, Iran offer to lay Iran-Pakistan gas pipeline

Islamabad: (Tuesday, March 13, 2012) lending a helping hand to energy as well as cash starved Pakistan, Iran and Russia have expressed interest in laying the Iran-Pakistan gas pipeline.

In order to determine feasibility of the offer, Economic Coordination Committee (ECC) has formed a Federal Cabinet body.

The ECC could only decide on the formation of federal cabinet body when it was briefed about the proposal in a meeting held having Federal Minister for Finance Dr. Hafeez Sheikh in the chair.

The committee that is to decide on deliberating on Iran-Pakistan gas pipeline is comprised of Federal Minister Syed Naveed Qamar, Dr. Asim Hussain, Federal Secretary for Economic Affairs and Finance and Governor State Bank of Pakistan.
According to news, the body has been directed to submit its report within 2 to 3 days.

It was also shared in the meeting that Iran has offered a sum of 250 million dollars for initial financing of the project.

In its proceeding, the ECC also approved a sum of 6.10 billion for Pakistan Railways to repair and restore the broken down locomotives.

The meeting also formed a committee to take stock of exporting 1.280 million tones wheat to Iran.