Iran-Pakistan Gas Pipeline (IPP) News & Updates.

[jeypore]

Iran-India-Pakistan cooperation would restore regional security: Rafsanjani
Tehran Times Political Desk


TEHRAN – Expediency Council Chairman Akbar Hashemi Rafsanjani on Sunday called for closer cooperation between Iran, India, and Pakistan in their efforts to bring back “tranquility” to the war-torn Afghanistan.


“Resolving the current crisis in Afghanistan requires extensive cooperation between the Islamic Republic of Iran, India and Pakistan. This cooperation can bring tranquility to the region,” Rafsanjani told visiting Indian Foreign Minister Pranab Mukherjee.

He said the situation of foreign troops in Afghanistan is similar to that of the Soviet army in 1979-1989 war.

“The experience of the Soviet Union’s presence in this country shows that the path the West is now treading in Afghanistan will not yield the desired results. The signs that are currently observed in Afghanistan show that the West is not capable of resolving the problems of this country.”

Elsewhere in his remarks, Rafsanjani said Iran and India enjoy centuries-old relations. “India has a special place in Iran’s strategy of ‘look to the East’,” he stated.

Rafsanjani, who also heads the Assembly of Experts, added, “Iran is determined to boost its relations with India.”

Iran, Pakistan, and India have been negotiating a deal to transmit Iran’s gas to India via Pakistan.

“The world’s energy demand … has made the implementation of the project inevitable,” he said in reference to the trilateral project dubbed the Peace Pipeline.

Rafsanjani added, “The implementation of this great project is the symbol of cooperation between the (three) countries.”

The Expediency Council chief also said a scientific cooperation between Iran and India is very important as the two countries has made great progress in different scientific fields in recent years.

For his part, the Indian diplomat insisted that “no country outside the region can find a solution to the problems of regional countries, and the regional nations themselves should resolve the problems through cooperation with each other.”

Mukherjee said India, Iran, and Pakistan play important roles in regional events. Further cooperation between the trio would help establish peace and stability in the region, he asserted

tehran times : Iran-India-Pakistan cooperation would restore regional security: Rafsanjani

 

[Evil Flare]

i will Hope India will move this Process Fast ..


I want to see USA Crying ..

 

[jeypore]

India wants Iran gas at its door for payment


4 Nov, 2008, 0241 hrs IST,Rajeev Jayaswal, ET Bureau




NEW DELHI: India is unwilling to pay for the Iranian gas transported through the proposed $7.6 billion Iran-Pakistan-India (IPI) gas pipeline unless
it is delivered at the India-Pakistan border.

Tehran is interested in delivering the gas at the Iran-Pakistan border, but New Delhi is concerned about its safe passage through the Pakistani territory in light of the growing terrorist activities across the border. Iran has expressed willingness to evolve a contractual mechanism for safe delivery of the gas to India.

“India has to ensure that liability to pay for the gas supplied by Iran is directly linked with its delivery at the India-Pakistan border,” an official source said. The negotiators have the Cabinet’s mandate to seek delivery of gas at the India-Pakistan border.

In February 2005, the Cabinet authorised the ministry of petroleum and natural gas (MoPNG) to engage in bilateral and multilateral negotiations with Iran, Pakistan, Bangladesh and other countries for laying trans-national natural gas pipelines.

Iran has reportedly suggested a trilateral mechanism for ensuring gas delivery at the India-Pakistan border. But it may still not supply gas at the Pakistan-India border. “It has suggested contractual provisions (in the gas sales purchase agreement) among the three countries to ensure safe delivery of gas to India,” the source said.

According to sources close to the development, India may construct and manage the IPI pipeline on the Pakistani side through a tripartite joint venture, but neither India nor Pakistan will be able to construct the pipeline in Iranian territory due to US sanctions.

Legal experts have advised New Delhi against investing in Iran’s upstream development. “Development of the pipeline within Iran should be a separate project, compared to the pipeline extending from the Iran-Pakistan border to the Indian border,” a source said.

New Delhi has adopted a cautious approach towards the 2135-km pipeline project on apprehensions of supply cuts arising out of geo-political factors. India, however, clarified that the nuclear deal will not impact the proposed pipeline.
India wants Iran gas at its door for payment- Foreign Trade-Economy-News-The Economic Times

 

[jeypore]

This is very interesting senario that India puts the responsiblty and the ball game to Iran. Where Iran has to find a way thru pakistan to get gas to India.

 

[IceCold]

We are just wasting time over it and with time to come Pakistan is going to suffer. Utter disappointment.

 

[TOPGUN]

Indian's are wasting or time eather u want it or not simple!!!!!!!!

 

[RescueRanger]

ISLAMABAD: The cabinet cleared the way on Wednesday for the gas pipeline project with Iran by accepting price purchase formula offered by Tehran.

A cabinet meeting accepted Iran’s offer to export one billion cubic feet per day of gas at 80 per cent of the crude oil price in the international market. A sale-purchase agreement is likely to be signed this year.

Briefing newsmen after the meeting, Minister for Information and Broadcasting Qamar Zaman Kaira said Pakistan had decided to go ahead with the gas pipeline project in accordance with its needs without caring about ‘US pressure, that forced India to pull out of it’.

The cabinet decided that the government would own responsibility of paying Rs31 billion outstanding against the Karachi Electric Supply Company to help its management invest the promised amount of Rs28 billion on development projects to increase power generation.

It approved ratification of an agreement on cooperation in the field of transportation and transit of goods between Pakistan and Uzbekistan with the objective to provide the latter an access for transhipment of its trade cargo to and from Gwadar port.

The cabinet decided to set up a four-member committee to oversee Gwadar port operations. It would also propose incentives for the proposed export processing zone.

It ratified the Sarso accord as Pakistan is a signatory to the agreement on the establishment of South Asian Regional Standards Organisation (Sarso) which has a mandate to remove technical barriers to trade and to facilitate flow of goods and services in the Saarc region.

The cabinet decided to review the Pak-Afghan transit trade agreement to safeguard the country’s interests while facilitating the Afghan trade.

It decided to levy 25 per cent regulatory tax on export of molasses because its production had dropped after a decline in sugarcane production.

In pursuance of the International Road Transport Agreement signed with Iran in June last year, the cabinet gave its approval for instrument of ratification concerning the deal.

The cabinet decided to defer approval of a new national education policy after a couple of provinces expressed reservations.

The meeting approved negotiations on draft agreement on defence cooperation with Hungary.

It gave its approval in principle for negotiating an MoU between the National Defence University and Institute des Hautes Etudes de Defence National of France.

The cabinet granted ex-post facto approval to initiation of negotiations for an MoU on political consultations with Libya to provide a forum to take stock of the trajectory of bilateral relations and share views on issues of mutual interest.

Ex-post facto approval was also granted for entering into negotiations for an extradition treaty with Libya. Approval was also granted for an MoU for cooperation in the field of employment generation.

The cabinet also approved signing of agreements for abolition of visa for diplomatic and official/special passport-holders with Libya, Indonesia and Ireland.

It approved in principle a draft bill for the establishment of National University of Law and Social Sciences at Islamabad with its campuses in provincial capitals.

The cabinet also approved draft of Anti-Money Laundering (Amendment) Bill, 2009, to bring various provisions of Anti-Money Laundering Ordinance, 2007, in line with international standards.

It approved draft Anti-Money Laundering (Amendment) Bill, 2009. The proposed amendments are necessary to bring the various provisions of Anti-Money Laundering Ordinance, 2007, in line with international standards.

The cabinet approved Pakistan’s accession to the International Convention for the Suppression of the Financing of Terrorism which requires parties to take steps to prevent and counteract the financing of terrorism whether direct or indirect through groups claiming to have charitable, social, or cultural goals or which engage in illicit activities.

It granted approval to the Draft Pakistan Marine Insurance Bill, 2009 and draft Law for Implementation of Convention of International Trade in Endangered Species of Wild Fauna and Flora Convention.


DAWN.COM | Business | Way cleared for IPI pipeline as Iran price accepted

 

[Musalman]

Price Pakistan accepted will ruin the economy

 

[HAIDER]

How Indian papers look at this deal

"Pakistan Okays Iran Gas Pipeline Without India "

 

[ajpirzada]

Iranian President Mahmoud Ahmadinejad shakes hands with his Pakistani counterpart Asif Ali Zardari before convening for a trilateral summit in Tehran.—AFP

The project, termed as the peace pipeline by officials from both countries, has been signed by President Zardari and President Mahmoud Ahmadinejad of Iran on the sidelines of the tripartite summit on Afghanistan security in Tehran.

However, talking to the Iranian official news agency IRNA the Iran’s Oil Ministry had said that negotiations on the ‘Peace Pipeline’ project were still underway between Iranian and the Pakistani delegations, which would allow Iran’s gas to be exported to Pakistan.

The Pakistani delegation negotiating the project was led by the advisor to the prime Minister on Petroleum Dr Asim Hussain, who is accompanied by petroleum ministry officials and a technical team headed the managing director Inter State gas Systems (ISGC), Syed Hasan Nawab.

The ISGS is a semiautonomous body looking after Pakistani interests in the international gas pipeline projects to import gas from Iran and Turkmenistan.

The federal cabinet had earlier agreed to allow the import of one billion cubic feet of gas at the rate of 80 per cent of the price of crude oil.

‘The next phase was to sign the gas sales purchase agreement with Iran,’ member of the delegation told Dawn.

Official sources said that soon after signing of the gas sales purchase agreement work would start at the designing of the project.

‘Pakistan has already appointed a German designer is ‘ILF’ for the pipeline,’ petroleum ministry sources said, adding that the pipeline would enter Pakistan from its border near Gwader area to Nawabshah, which is the hub of gas pipelines in the country.

The IPI project was conceived in 1995 and after almost 13 years India finally decided to quit the project in 2008 despite a severe energy crises in that country. Pakistan is also facing severe criticism from the US over any kind of economic deal with Iran.

Official sources say that the sudden change of stance from the Pakistani government and the pace of developments at the project suggest that the strong US opposition has softened.

According to the initial design of the project, the 2,700 kilometre-long pipeline would cover around 1,100 kilometres in Iran, 1000 kilometres in Pakistan and around 600 kilometres in India, and the size of the pipeline was estimated to be 56 inches in diameter.

‘We are still hoping that India would join the project but in other case the size of the pipeline would be reduced to 42 inches as initially estimated,’ an official of ISGS said.

However sources in the ISGS said designing and finalising the reports of financial consultants would take up to one year and the work over the project can be started by mid of 2010.The estimated project completion time is between five years.

Sources in the petroleum ministry said that despite cabinet approval Pakistan would negotiate to get the gas prices lowered.

The official report prepared by the petroleum ministry and the ISGS said that the gas would be purchased for power generation and it would enable Pakistan to generate 5,000 megawatts (MW) power.

The petroleum ministry also said that power generation and usage of imported Iranian gas by heavy industries would result in annual saving of up to $1 billion in furnace oil imports, if the crude oil prices are at $50 per barrel.

The reports and calculations forwarded by the ISGS further said that there would be an annual saving of $735 million, compared to if the equivalent quantity of LNG was imported for power generation, and the saving will increase in line with the hike in global crude oil price.

DAWN.COM | Business | Pakistan, Iran sign gas pipeline accord

 

[A1Kaid]

Seems like a win-win proposal for both Iran & Pakistan, can't complain there. Iran will get to export it's oil to the region and build better ties with Pakistan and earn more money, Pakistan will have discounted oil imports from a friendly source and will be able to develop Gwadar further, not to mention develop better economic ties with the Persians.


Thanks for posting what appears to be good news.

 

[brilTek]

Iran, Pakistan Sign Gas Pipeline Deal

Tehran, May 24, IRNA – Iran and Pakistan signed a deal on Sunday for laying of a gas pipeline to transfer Iran's gas to Pakistan.

The deal known as "Peace Pipeline" was signed on the sidelines of the current tripartite summit on Afghanistan security in Tehran.

President Mahmoud Ahmadinejad and his Pakistani counterpart signed the contract and exchanged views on it.

Iran's Oil Ministry declared on Saturday that negotiations on "Peace Pipeline" were underway between Iranian and the Pakistani delegations which would allow Iran's gas to be exported to Pakistan through Assalouyeh.

The 2,700 kilometer long pipeline is to transfer Iranian gas to India via Pakistan.

It is predicted that some 1,100 kilometers of pipelines would be laid in Iran's territory, 1000 kilometers in Pakistan and 600 kilometers in India.

The project is to transfer some 150 million cubic meters of gas per day.

Construction of the 56 inch thick pipeline is to be completed in five years.



Source: Iran News: Pak Iran "Peace Pipeline"

 

[murshid]

good news , india is OUT , i am more then happy..

 

[niaz]

Main reason why the negotiations had been stalled for a few years was the price. I don’t see any mention of the price at which Iran will sell her gas to Pakistan.

Internationally, natural gas is sold on the US Dollars per million BTU index linked to the crude price. There is huge variation in the prices depending location and when the prices were initially negotiated. To quote actual example:

Largest importer of gas as LNG (liquefied natural gas) is Japan which imports around 6- million tons per month. Average import price into Japan in Dec 2008 was $13.75 per million BTU. Japan’s largest supplier is Indonesia which shipped 1.4-million tons of LNG to Japan at a price of $7.37 per million BTU. Imports from Australia landed at $16.42 and from Malaysia at $13.74 /mn BTU.

Taiwan on the other hand imported 0.5 million tons in December with prices varying from $3.18/mn BTU from Qatar to $17.70/mn BTU from Nigeria. (These are landed prices not FOB prices)

Point I am trying to make is that most important element; that is price, has not been disclosed in the news. IMO we should wait and see how the price compares with the alternate of fuel oil import before we start celebrating.

Since the concept of million BTU is difficult to grasp. Please note:

1-metric ton of LNG (specific gravity of 0.45) equals 51.3 million BTU.
1-million BTU equals 0.172 barrels of oil
1-million BTU equals 1000 cubic feet of gas.
150-million cubic metres of gas per day is equal to approx 91,000 barrels per day of oil.

LNG is the same thing as natural gas; it is liquefied for the ease of transportation. The price comparison of gas coming from Iran with the LNG is therfore valid.

 

[brilTek]

Main reason why the negotiations had been stalled for a few years was the price. I don’t see any mention of the price at which Iran will sell her gas to Pakistan.

Its 80% of crude oil as reported in two newspapers, Dawn & The News.

Following excerpt from Dawn:

The federal cabinet had earlier agreed to allow the import of one billion cubic feet of gas at the rate of 80 per cent of the price of crude oil.


The following from The News

a senior official of the Ministry of Petroleum who attended the meeting confided to The News.

“The price of gas to be imported from Iran under Gas Sales and Purchase Agreement (GSPA) through IP gas line project has been proposed at 80 per cent of the crude oil parity price as offered by Tehran,” told the official.

Earlier Islamabad offered 78.2 per cent of crude oil price in its last ditch offer to strike the deal, but during the recent visit of President Asif Zardari, Tehran authorities refused to retreat from its offer of 80 per cent of the crude oil gas price.