Russia backtracks on Iran-Pakistan pipeline

[Supply&Demand]

IP pipeline: Govt considers alternative as Russia caves in to pressure

KARACHI: The government is working on an alternative plan to finance the $1.5 billion Iran-Pakistan (IP) gas pipeline as hopes for funding from Russia fade in the face of mounting pressure from the US to stop the project, says a senior government official.

Earlier, a Chinese bank backed out of financing the vital gas supply project which may ease most of the energy shortage in the country.
“In the alternative plan, the government is studying a joint investment formula, according to which the engineering, procurement and construction (EPC) contractors will be invited to provide some funds for the pipeline,” the official said.

In talks held between Pakistani and Russian officials in the first week of April in Moscow, Pakistan asked Russia to either extend a loan or provide finished products and other material relating to the pipeline. Russia agreed to respond to the proposal in two weeks, but no response has been received so far.

After the return of the delegation from Moscow, the government officials had, however, announced that Russia had agreed in principle to give financial and technical assistance for the pipeline.
“A reminder has been sent to Russia in this regard and it is to reply by April 30,” the official said. Petroleum Secretary Ijaz Chaudhry also confirmed that Russia had not yet responded to the proposal.

Pakistan approached Russia after a Chinese bank hinted at its inability to push ahead with financing the project amid increasing US pressure. Russia offered to finance the entire pipeline during a four-day visit of Foreign Minister Hina Rabbani Khar to Moscow in February.

Moscow linked the proposal with the award of contract to its energy giant, Gazprom, without bidding. However, to give its consent the government will have to waive Public Procurement Regulatory Authority (PPRA) rules, designed to ensure transparency in government dealings.
“Funds will be generated through infrastructure gas development cess and EPC contractor will also be asked to extend some financing,” the official said, adding the government would make it part of the tender for EPC contract.

A sub-committee of the Economic Coordination Committee (ECC) on IP gas pipeline had decided that the government would go ahead with the project even if Russia and China showed reluctance.
In the project, an 800km-long pipeline will be laid from the Iran-Pakistan border to Nawabshah. The project has entered implementation phase and work on front-end engineering and design, feasibility and detailed route survey is under way.

A joint venture of Germany’s ILF and Pakistan’s Nespak has been tasked with the engineering work and survey, which is scheduled to be completed by June.

 

[somebozo]

Ok guys lets forget about IP and concentrate on Shale gas and TAPI
beggars cannot be choosers.

 

[DV RULES]

Stupid Pakistani government.

1st mistake: On which bases they claimed that they are ready to invest when they didn’t get any solid document or green signal from Kremlin?

2nd mistake: Pakistani officials thought that it’s US or UK where they used to go. Who will learn them that this Russia where Indian lobby stronger than they imagine and they could put pressure to turn their thinking against Pakistan.

Moreover it is important to note that Russian government will not simply go against US pressure unless they will not get guaranty securing their interests in region through Pakistan and investment security. Russian government ever complained about instability of political situation in Pakistan as it effects on international agreements with change of government. Pakistan approved itself a risky investment zone.

There are lot of factors may involved while considering Pakistan’s proposal, security situation is one of them. Meanwhile they are looking in broad perspectives of their business in Pakistan and we can offer them participating and investing in more projects.

There should be proper backup in Moscow from embassy of Pakistan (Which is doing nothing except stamping visas).

In my point of view Prime Minister Gilani had to meet with counterpart in Moscow rather than sending their beauty queen.

 

[sputnik]

I think everybody is asking to Pakistan Govt. only 1 thing. Whether they themselves promise abt the safety of the pipeline.
This is the reason India is jittery to get into this deal, This is the reason Chinese banks stayed put and now this time Russia.

credibility part has taken new low for pakistan whether in Cricket or doing business.

 

[JanjaWeed]

It was an unnecessary hype created by pakistani govt. They have done such bizarre announcements in the past. I can remember one such announcement made in france sometimes ago when Zardari visited that country, claiming France has agreed for civil nuclear deal.

 

[FaujHistorian]

Pakistani leftists and socialists have since the time of Zulfi Bhutto, tried very hard to push the country away from the West and into the laps of Russia and China.


Leftist and Socialists are ideology freaks just like Islamists. So they do not want to look at the real-politic or simply the realities of global trends.

These poor folks live in their self made Hojras, etc without ever realizing that Russia especially does not want stable Afghanistan, Iran, and Pakistan. Yes it will support just enough so we don't turn to the West but that's all.

Iranian pipeline is yet another false dream of Pakistani leftists that somehow would bring Pakistan closer to Islam and keep America away.

But we don't have the juice to do so. Socialist Islamist revolution of Zulfi Bhutoo destroyed Pakistan's domestic economy, and the process is still on thanks to PPP and pro-islam parties.

Pipeline is bad idea from commercial and global perspective and we still keep pushing our country in that direction. The direction of utter economic destruction at present and may be in future. They are dying to get Pakistan under Western sanctions, and who knows they may succeed.

Sadly.

 

[user1]

A sub-committee of the Economic Coordination Committee (ECC) on IP gas pipeline had decided that the government would go ahead with the project even if Russia and China showed reluctance.

In the project, an 800km-long pipeline will be laid from the Iran-Pakistan border to Nawabshah. The project has entered implementation phase and work on front-end engineering and design, feasibility and detailed route survey is under way.

Our main concern is building the pipeline, that we will.

And we have other things in motion too!

Pakistan plans LNG imports from Algeria | Reuters

Second LNG terminal at Port Qasim is also to complete this year.

New gas deposits are recently found in Balochistan.

 

[RazPaK]

I believe the Russians will regret their decision when it has been built. We never asked for Russia in the first place anyways, and they haven't exactly refused either.

 

[DV RULES]

I believe the Russians will regret their decision when it has been built. We never asked for Russia in the first place anyways, and they haven't exactly refused either.

Nothing to regret if they didn't said "Yes" or "No".

btw this is main problem of our Pakistanis that we pumped to sky anything from we are expecting help or hope, we don’t know how to tackle problem. It is just like you said but it was appreciable if you go through the reasons for they are delaying to answer. In previous thread I observed attitude of Pakistani members while discussing Putin’s visit and most of them made castles of hops in the air nonetheless trying to evaluate history - present and future.

 

[RazPaK]

Nothing to regret if they didn't said "Yes" or "No".

btw this is main problem of our Pakistanis that we pumped to sky anything from we are expecting help or hope, we don’t know how to tackle problem. It is just like you said but it was appreciable if you go through the reasons for they are delaying to answer. In previous thread I observed attitude of Pakistani members while discussing Putin’s visit and most of them made castles of hops in the air nonetheless trying to evaluate history - present and future.

I'm actually not in favor of the Russians in the first place, so I was not among the ones with high hopes.

 

[E Pencho]

Now what will Pakistan do? The USA said no, the Chinese bank said no, and now Russians. Is it the time to close the project?

I mean, is it the time to forget about it?

I mean, is it the time to forget about it?

 

[RoYaL~GuJJaR]

Every Nation thinks about its own interest first and Russia realized this with proper calculation. Hence, this move!


-------------------------------------------------------------

Stupid Pakistani government.

1st mistake: On which bases they claimed that they are ready to invest when they didn’t get any solid document or green signal from Kremlin?

2nd mistake: Pakistani officials thought that it’s US or UK where they used to go. Who will learn them that this Russia where Indian lobby stronger than they imagine and they could put pressure to turn their thinking against Pakistan.

Moreover it is important to note that Russian government will not simply go against US pressure unless they will not get guaranty securing their interests in region through Pakistan and investment security. Russian government ever complained about instability of political situation in Pakistan as it effects on international agreements with change of government. Pakistan approved itself a risky investment zone.

There are lot of factors may involved while considering Pakistan’s proposal, security situation is one of them. Meanwhile they are looking in broad perspectives of their business in Pakistan and we can offer them participating and investing in more projects.

There should be proper backup in Moscow from embassy of Pakistan (Which is doing nothing except stamping visas).

In my point of view Prime Minister Gilani had to meet with counterpart in Moscow rather than sending their beauty queen.

Obsessed much ? conspiracy theories ? jeez!!

Give it a rest!

 

[Nothing]

It was predicted by many Pakistani members also.. under USA pressure no one wants to support Iran related projects, people who just build castle in air don't know nature of sanctions on Iran by USA. If some one break those, they will be in trouble with their USA related business and assets in USA. In current world it is difficult to find large company which don't have relation with USA or EU.
Till date GOP was lying from teeth about pipeline. All past statements was just for public consumption and chest trumping exercises. Even they know it is highly difficult to purchase gas from Iran via pipeline. GOP should come clear with their current position and stop confusing people. They were never in position to get this done without USA help and still not.
They have to complete it by 2014 and if not they have to pay Iran daily fine, there should be some exit strategy from it for some time. Iran is also not interested in helping Pakistan rather using pipeline as means of point scoring against USA. Russian might be interested for same reason .. point scoring.
For Iran revenue from pipeline is and will never be big part of their revenue if only Pakistan will be partner. right now they are more interested in selling Oil to China and India, which they are considering their diplomatic victory. As two big economy(s) is standing with them in difficult situation defying USA.
Pakistan don't have guts to say no to USA for such a sensitive issue, they can score some points on supply route unless and until USA is not getting hurt badly.
This is high time for GOP to come clear and clean on their foreign policy ...

 

[FaujHistorian]

........

They [paks] have to complete it by 2014 and if not they have to pay Iran daily fine,...

Pakistani pro-Iranians were not planning to pay for the gas (if it ever flowed through imaginary pipelines) and you are talking paying $$ without the pipelines?

Fa-Ged bout it!

As they say in Mafia movies.


peace brother. peace to you!

Now what will Pakistan do? .

No we'll use India method, and send gold over to Ayatullahs.

 

[r3alist]

doing business with iran like this is simply too much of a hot potatoe.

for russia to finance this they would effectively have to stick a massive middle finger up to the us/israel and they are not so brave or stupid.



that being said, pakistan needs to get its act together, stop this mentality of always looking for a patron (china, us, russia, saudi, who next?) and try and sort this out internally, its an uphill task, many countries do not want IP to happen.

ultimately any energy co-coperation in the region is good for pakistan, that means ip, tapi or what ever else is on the table.