ISLAMABAD: Pakistan and Iran have signed an agreement to activate a bilateral gas pipeline project, without India's participation, after 14 years of negotiations over what was initially framed as the Iran-Pakistan-India (IPI) gas pipeline project.
Sources in the ministry of petroleum and natural resources told Daily Times here on Saturday that Pakistan Interstate Gas Company (PIGC) and the Iranian National Oil Company (INOC) signed the agreement late Friday in Turkey.
The official said that the agreement would be governed through a third country law that was why it was signed in Turkey.
Under the gas sale purchase agreement, Iran would provide 750 million cubic feet of gas per day to Pakistan for the next 25 years, which would generate 4000MW of electricity. Officials in Islamabad termed the deal a major breakthrough and an achievement that would greatly help Pakistan meet its energy needs.
The project, when initially mooted in 1994, was intended to carry gas from Iran to Pakistan and on to India. New Delhi withdrew from the talks last year over repeated disputes on prices, transit fees and security issues.
The pipeline project would be completed by 2013, the sources maintained. "The gas pipeline would begin from Gawadar near Iranian border having 800 kilometer length. The determination of gas price would be linked with oil prices in the international market but will be less than 25 percent as compared to crude oil prices," sources maintained.
Officials of the ministry of Petroleum and Natural Resources termed the agreement as landmark achievement of the government and expressed the hope the it would help Pakistan to meet shortfall both for commercial and domestic purposes.
The country urgently needed gas and the agreement would greatly help the country to over come the shortfall.
Another official of the concerned ministry said that the new exploration and production petroleum policy 2009 with alluring incentives would definitely accelerate the investment in the oil and gas sector. Pakistan was rich in oil and gas, particularly Balochistan. If the government manages to enforce its writ by giving the ownership feeling to the local people, then aggressive oil and gas exploration could be carried out. This was the only way left for Pakistan to cater to the energy needs of the country.
This article is from www.dailytimes.com.pk at : dailytimes.com.pk/default.asp?…07%5Cstory_7-6-2009_pg5_4
Sources in the ministry of petroleum and natural resources told Daily Times here on Saturday that Pakistan Interstate Gas Company (PIGC) and the Iranian National Oil Company (INOC) signed the agreement late Friday in Turkey.
The official said that the agreement would be governed through a third country law that was why it was signed in Turkey.
Under the gas sale purchase agreement, Iran would provide 750 million cubic feet of gas per day to Pakistan for the next 25 years, which would generate 4000MW of electricity. Officials in Islamabad termed the deal a major breakthrough and an achievement that would greatly help Pakistan meet its energy needs.
The project, when initially mooted in 1994, was intended to carry gas from Iran to Pakistan and on to India. New Delhi withdrew from the talks last year over repeated disputes on prices, transit fees and security issues.
The pipeline project would be completed by 2013, the sources maintained. "The gas pipeline would begin from Gawadar near Iranian border having 800 kilometer length. The determination of gas price would be linked with oil prices in the international market but will be less than 25 percent as compared to crude oil prices," sources maintained.
Officials of the ministry of Petroleum and Natural Resources termed the agreement as landmark achievement of the government and expressed the hope the it would help Pakistan to meet shortfall both for commercial and domestic purposes.
The country urgently needed gas and the agreement would greatly help the country to over come the shortfall.
Another official of the concerned ministry said that the new exploration and production petroleum policy 2009 with alluring incentives would definitely accelerate the investment in the oil and gas sector. Pakistan was rich in oil and gas, particularly Balochistan. If the government manages to enforce its writ by giving the ownership feeling to the local people, then aggressive oil and gas exploration could be carried out. This was the only way left for Pakistan to cater to the energy needs of the country.
This article is from www.dailytimes.com.pk at : dailytimes.com.pk/default.asp?…07%5Cstory_7-6-2009_pg5_4