India, Pakistan LNG supply deal almost done

[Devil Soul]

NEW DELHI - India and Pakistan are close to signing the first-ever bilateral agreement to supply LNG via a 120-kilometre pipeline from Jalandhar to Jallo near Lahore via Wagah border, Hindustan Times reported.

The newspaper said that the period of agreement was expected to be five years where India would supply 5 million cubic metres of gas daily to Pakistan.

The pipeline project is expected to take about 18 months during which GAIL will lay a 110-km pipeline from Jalandhar to Wagah via Amritsar and Pakistani Inter-State Gas Services Company will lay a 10-km pipeline from Wagah to Jallo, in the outskirts of Lahore.

External affairs ministry sources told the newspaper that the agreement would be finalised between the two companies after negotiations on gas price and security of payments are concluded.

While India wants to supply gas at a price linked with crude prices plus a fixed component that includes transportation tariff, state tax, VAT and services tax, Pakistan wants the tax component to be deducted as gas supply is a deemed export.

The Indian Petroleum Ministry has now approached the Finance Ministry to seek tax exemption for gas supply to Pakistan. The gas supply is expected to start two years from the day the agreement is inked.

GAIL wants an international bank or sovereign guarantee from Pakistan to ensure security of its payments with a three-month advance and easy closure of contract incorporated in the terms of agreement. “Given the delicate relationship between the two countries, GAIL wants the immediate closure built into the gas supply contract.

We expect the contract to go through as Punjab Chief Minister Shahbaz Sharif is pushing for gas supply with his brother Pakistan Prime Minister Nawaz Sharif,” a senior official told the newspaper. - See more at: India, Pakistan LNG supply deal almost done | Pakistan Today | Latest news | Breaking news | Pakistan News | World news | Business | Sport and Multimedia

 

[Agnostic_Indian]

I though India is importing the gas.

 

[kaykay]

Thats a good news. I hope we'll trade more in near future.

 

[jamesseo89]

NEW DELHI - India and Pakistan are close to signing the first-ever bilateral agreement to supply LNG via a 120-kilometre pipeline from Jalandhar to Jallo near Lahore via Wagah border, Hindustan Times reported.

The newspaper said that the period of agreement was expected to be five years where India would supply 5 million cubic metres of gas daily to Pakistan.

The pipeline project is expected to take about 18 months during which GAIL will lay a 110-km pipeline from Jalandhar to Wagah via Amritsar and Pakistani Inter-State Gas Services Company will lay a 10-km pipeline from Wagah to Jallo, in the outskirts of Lahore.

External affairs ministry sources told the newspaper that the agreement would be finalised between the two companies after negotiations on gas price and security of payments are concluded.

While India wants to supply gas at a price linked with crude prices plus a fixed component that includes transportation tariff, state tax, VAT and services tax, Pakistan wants the tax component to be deducted as gas supply is a deemed export.

The Indian Petroleum Ministry has now approached the Finance Ministry to seek tax exemption for gas supply to Pakistan. The gas supply is expected to start two years from the day the agreement is inked.

GAIL wants an international bank or sovereign guarantee from Pakistan to ensure security of its payments with a three-month advance and easy closure of contract incorporated in the terms of agreement. “Given the delicate relationship between the two countries, GAIL wants the immediate closure built into the gas supply contract.

We expect the contract to go through as Punjab Chief Minister Shahbaz Sharif is pushing for gas supply with his brother Pakistan Prime Minister Nawaz Sharif,” a senior official told the newspaper.]

I am sure that Pakistan is working hard to get some pipelines of gas from IRAN and later on for INDIA and CHINA as well.

 

[Gautam]

Business is always good. It stops both the party to get into conflict. I hope more opportunities knock the doors.

 

[Pakistanisage]

Bad decision , Pakistan should not get itself involved in any trade deal with India. Stop trading with India.

 

[MST]

Thanks to Congi Governments 5% growth we have no option but to sell our resources to other countries instead of using it in our own industries

 

[newdelhinsa]

I hope Pakistan has got NOC from LeT/JuD chief Hafiz Saeed.

 

[A.Rafay]

This deal will benefit Pakistan however it should be only for limited time period as we should focus on timely completion of IP pipeline and it should be our long term source of gas while small deals like this one can bridge the gap until IP is complete.

 

[Skull and Bones]

This deal will benefit Pakistan however it should be only for limited time period as we should focus on timely completion of IP pipeline and it should be our long term source of gas while small deals like this one can bridge the gap until IP is complete.

US threatens Pakistan with sanctions over Iran gas pipeline ? RT News

 

[A.Rafay]

US threatens Pakistan with sanctions over Iran gas pipeline ? RT News

We reject sanctions! IP pipeline will continue despite sanctions from US or UN. We should use other tactics like WOT to negotiate.

 

[Edevelop]

US threatens Pakistan with sanctions over Iran gas pipeline ? RT News

Today's news

Pak-Iran gas pipeline to be completed by 2014

 

[Skull and Bones]

We reject sanctions! IP pipeline will continue despite sanctions from US or UN. We should use other tactics like WOT to negotiate.

What after US pullout?

 

[cloud_9]

External affairs ministry sources told the newspaper that the agreement would be finalised between the two companies after negotiations on gas price and security of payments are concluded.

While India wants to supply gas at a price linked with crude prices plus a fixed component that includes transportation tariff, state tax, VAT and services tax, Pakistan wants the tax component to be deducted as gas supply is a deemed export.

So how did they reach a conclusion that

India and Pakistan are close to signing the first-ever bilateral agreement to supply LNG via a 120-kilometre pipeline from Jalandhar to Jallo near Lahore via Wagah border, Hindustan Times reported.

 

[A.Rafay]

What after US pullout?

Well what after it?? the pipeline will complete at the same time as the US withdrawal give or take if the Govt is really sincere in completing it. The US cant abandon Pakistan after 2014 as they will have to cope with Afghan problems as some US troops will stay in Afghanistan, If they do try sanctioning us we can try cutting NATO supply line which is crucial for their equipment withdrawal, BTW once Iran gets nuke US will shut up immediately.