Iran invited to invest in gas pipeline

[A.Rafay]

ISLAMABAD: Pakistan has offered Iran to invest in the construction of the gas pipeline. The government is expected to issue tenders for laying the gas pipeline in the coming week.

Iranian Ambassador Ali Raza met petroleum advisor Asim Hussain in Islamabad.

According to sources from the petroleum ministry the petroleum advisor asked the Iranian ambassador for Iran to participate in the construction of the gas pipeline in Pakistan.

According to officials of the Inter-state Gas System Company present in the meeting, Iran has been asked to help in the construction of the pipeline from the Iranian border. It is expected that the construction of this pipeline will start by December.

To import 750 million cubic feet gas daily from Iran, Pakistan need to lay a 780 km pipeline, expected cost of which is 1.5 billion dollars where as the supply from this pipeline is expected to commence from December 2014.
Iran invited to invest in gas pipeline - thenews.com.pk

 

[KingMamba]

Good news but it doesn't matter who makes this pipeline the gas needs to be distributed in Baluchistan first so that some developmental projects can take place at a quicker pace.

 

[niaz]

Sad reality is that Iran Pakistan pipeline is not going to be built in the foreseeable future. Sanctions have resulted in flight of capital. Official rate is 12, 260 riyals (1,220 Tumans) to one US dollar. In January 2012 market rate was 16,000 Riyals per USD. Riyal suffered a free fall during September –October 2012 and currently valued at about 35,000 Riyals to one dollar.

There are many reasons; primarily the reduction in crude oil exports from 2.5-million barrels per day to about 1.5 million.

Thus Iran has no money. At this point in time Iranian Gov’t is even more cash starved than GOP. From where are they going to get funds to build their portion of the pipeline?

 

[saiyan0321]

Thus Iran has no money. At this point in time Iranian Gov’t is even more cash starved than GOP. From where are they going to get funds to build their portion of the pipeline?

pfft as long as they build it and supply it i dont care where they get the cash from we arent building it and iran needs to sell its gas and oil and we need it believe it or not they may need this pipeline more then us

 

[genmirajborgza786]

why not just give the contract to Russia with out bidding they are interested & have offered to build it & finance it this is where the army should step up the pressure & make sure that the govt signs it.

 

[AZADPAKISTAN2009]

When not if , the gas pipeline is complete , in 12 months time ,

Iran will get steady flow of 2-4 Billion from sales and the energy generate from the project will gain Pakistan 80-100 billion dollars in economy improvements

When not if , the gas pipeline is complete , in 12 months time ,

Iran will get steady flow of 2-4 Billion from sales and the energy generate from the project will gain Pakistan 80-100 billion dollars in economy improvements

 

[niaz]

pfft as long as they build it and supply it i dont care where they get the cash from we arent building it and iran needs to sell its gas and oil and we need it believe it or not they may need this pipeline more then us

Main Iranian crude buyers, Japan, South Korea and India have cut their imports by half. China is the only exception. Iranian vessels are not even covered by insurance and Iranian banks are not part of the Swift system. Any vessl that has called at Iranian ports is barred from calling at most international ports. Middle Eastern banks won't honour an L/C if the product was carried on a vessel with Iranian flag for the fear that the money would be held up indefintely.

Iran is having difficulties finding money for paying for the import of essential items such as spare parts for the compressors and other petroleum production equipment. One company I know is owed about $1.7-million but NIOC has not been able to reimburse for various reasons.

No matter how great are potential benefits, IP pipeline is low priority for Iran and I don't see it being built in next couple of years. Whether you like it or not; this is the bitter truth.

I request Iranian members to comment if my predictions are right?

 

[Karl]

I think it might get built precisely because of China's need for Iranian oil. If Pakistan and China show soliditary over Iran's nuke program, I don't see a reason ehy it shouldn't be built.