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

[Kompromat]

Bro I am not doubting the news. I am highlighting the irony. Something fishy.. try smelling. Forget it.

Lets wait and see... Russians will invest for the buck, nothing else.

 

[NALANDA]

Lets wait and see... Russians will invest for the buck, nothing else.

I will like Russians to have more leverage on you than the Saudis. Who want the fckun war and deaths. Life is beautiful. Love, live.

 

[Dillinger]

Lets wait and see... Russians will invest for the buck, nothing else.

There is nothing fishy about it. From day one the whole brouhaha has been about isolating Iran. Its a damn pipeline, no one with any business sense would oppose it as such unless it was cutting into their own margin. If you are an investor in Iran it behooves you to wish for and facilitate the expansion of Iran's linkages, the more nations invested/dependent on Iran the lesser the chance that someone will try to gag it with sanctions. Our own investments there have suffered because it was easy for the US to sanction Iran as it is contained by an antagonistic neighborhood. The Russians are doing what they are good at in this case, or Gazprom actually, since that is one company which has gone into any place where a buck can be made- from the waters off the coast of Vietnam despite Chinese protests to now perhaps Iran.

 

[Kompromat]

I will like Russians to have more leverage on you than the Saudis. Who want the fckun war and deaths. Life is beautiful. Love, live.

Saudi leverage is waning due to their own policies. Ever since Faisal who had been a true friend of Pakistan, passed away, the following Suadi govts, have not carried on his legacy and have contributed into the development of negative sentiment in Pakistan.
Post Soviet Afghan war is the timeline, i'm talking.

 

[Dillinger]

Saudi leverage is waning due to their own policies. Ever since Faisal who had been a true friend of Pakistan, passed away, the following Suadi govts, have not carried on his legacy and have contributed into the development of negative sentiment in Pakistan.
Post Soviet Afghan war is the timeline, i'm talking.

NOT if Tind has to say anything about that and the indoctrinated portion of the masses. Remember, PDF is not an accurate reflection of Pakistan's collective psyche, the amount of denizens who will throw a hissy fit if they see their government or agencies speaking out against KSA or overtly acting them may still boggle you...ergo poor Hype's itchy trigger finger.

 

[sinocom]

You can't be Chinese for sure, BDeshi by any chance ??

More indian low IQ logic.Maybe this is why your own policies are so self destructive.

 

[HIMALYA]

More indian low IQ logic.Maybe this is why your own policies are so self destructive.

Ok BDeshi

 

[Viking 63]

Time to complete this project as soon as possible !!!

 

[Kompromat]

Pakistan has right to renegotiate Iran gas price: Shahid

Khalid MustafaFriday, October 25, 2013

ISLAMABAD: Pakistan possesses the right to renegotiate the gas price with Iran under the Iran-Pakistan gas pipeline, 12 months before the project comes on stream and both the countries can review the gas price after every three years.

Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said this while taking to media persons here on Thursday.He said the existing price of Iranian gas was $12 per MMBTU keeping in view the existing oil prices on the international market. The gas price has been linked with the Japan Crude Cocktail price.

To a question he said the Iranian gas price that stood at $12 per MMBTU was 150 percent higher than the basket price of domestic gas in Pakistan, but even then it was 25 percent lower than the LNG and 50 percent lower than the diesel price. “We will definitely ask Tehran to review the price of gas under the right that Pakistan has in the gas deal signed between the two sovereign countries.”

To a question, the minister said he himself came to know through the media that he was going to Iran this month; otherwise, there existed no such plan right now.However, Abbasi said the ministry had sought an appropriate time from his Iranian counterpart for a meeting two months back, but so far ‘we are still waiting for the response’. He said Pakistan was scheduled to have the first blow of Iranian gas by December 2014.

The minister said this time the country was facing huge gas deficit and the authorities concerned were actively considering all options to handle gas load management including the provision of gas to domestic consumers in the Punjab and KP only at meal time in the winter season (December to February) as the government wanted to cater to the needs of all other categories of consumers.

He also said this time the government will not be able to provide gas to whole domestic sector as the country will face a huge gas deficit in the coming winter season.In case the gas is provided to the domestic sector, then no gas will be available for industrial, commercial and CNG sector during the said three months time.

The minister said the government was planning to ensure the injection of imported LNG into the country’s gas distribution system by November 2014. In the first year, some 200 mmcfd LNG will be injected into the system and the next year 200 mmcfd more will come. In toto, the government wants to import 2 BCF LNG in the country.

To a question, the minister said the second LNG project will come on stream in 2015 and the third in 2016. About the exploration and production companies’ issues which they are facing in initiating the exploration activities in various blocks allotted to them, the minister said that security and price were the two constraints. The issue of well head price needs to be resolved whereas the issue of security is still there. “Some E&P companies are managing the security issue at a very high cost,” he said.

http://www.thenews.com.pk/Todays-Ne...s-right-to-renegotiate-Iran-gas-price:-Shahid

 

[Kompromat]

IP pipeline: SDPI report suggests renegotiating gas price

October 24, 2013
USMAN CHEEMA

ISLAMABAD - Sustainable Development Policy Institute (SDPI) in its report launched on Wednesday has termed the Iran-Pakistan gas pipeline project financially unviable for the country, taking the plea that the price agreed in the agreement is far high as compared to Iran’s other gas sale agreements made with some other countries.

The report, which is an independent project of SDPI, has suggested that Pakistan should try to re-negotiate on the price of gas. The aforementioned report has discussed in detail the Pakistan’s natural gas sector, performance of gas-fired thermal power plants and the Iran-Pakistan pipeline project.

The research report, while not negating the importance of IP gas pipeline, has revealed that Iran had made gas sale contract with China at much lower price but on the other side it is almost 3 times what is decided with Pakistan so it was needed to renegotiate the price. Presenting the report, Engr Arshad H Abbasi, Energy Advisor SDPI, while speaking at the occasion told that the price was set following the formula in which gas and oil are linked with each other. He gave the example of Italy and Germany that took their cases to the International Court of Arbitration for delinking of the oil and gas pricing regarding their gas deals and also won the case from the court.

He clarified that there was no point for cancellation of the Iran-Pakistan gas pipeline agreement but renegotiation of the gas prices under the prevalent situation was needed under the clause 6.3.2 provided in the agreement. He further said that SDPI has analysed that power sector of Pakistan and in-depth studies reveal that buying gas from Iran at much higher rate cannot be declared feasible to be used for electricity generation as it will increase the cost instead of providing relief.

To substantiate his argument Arshad Abbasi said according to the agreement rate for Pakistan is more than $15/MMBTU if calculated in relation to the current JCC prices though Iran is supplying gas to Turkmenistan at a rate of $4/MMBTU. SDPI report made with his contribution also suggests that Pakistan also needs to follow global shale gas initiatives to decrease its reliance on the foreign resources.

While chairing the session, Engr Shamsul Mulk, former chairman WAPDA/Former Chief Minister KPK, drew attention towards the consistent policy failures in the energy sector, which have led to the present high costs of electricity. He also asserted that as the cost of electricity generation from oil or coal sources is much higher, natural gas is crucial for Pakistan’s energy sector. In this scenario, Pakistan needs to import gas but the importance of mutual benefits regarding the IP project cannot be ignored and Pakistan should not compromise on pricing issues.

He stressed the need for building more dams and water reservoirs. Quoting the example, Shamsul Mulk said Egypt managed to survive 7 year long drought with the help of proper water storage system of storage over Aswan.
Former Ambassador Shafqat Kakakhel, Chairman Board of Governors SDPI said that the report has been launched with the aim to contribute to the ongoing national dialogue over energy security of Pakistan. There is a dire need of improving transmission and distribution system, developing clean sources of energy, controlling indiscriminate spread of gas connection and maintaining smart meters, he maintained.

He said Pakistan has already witnessed capital flight due to energy crisis Pakistan as a lot of textile units had already shifted to Bangladesh that has also caused massive un-employment in the country. Earlier, in his welcome remarks, Dr Abid Qaiyum Suleri, Executive Director, SDPI highlighted that SDPI’s report on IP project presents an objective analysis of Pakistan’s energy scenario while taking into consideration the financial and economic ramifications of the project.

He also emphasized the significance of this report and the IP project in the context of US-Pakistan relations as it is believed that Pakistan’s Prime Minister will have discussion about the country’s energy crisis with his US counterpart in Washington. Dr Suleri said that the report gains significance also from the fact that Pakistan will have to consider the international natural gas scenario and the position taken by United States given its diplomatic relations with Iran.

http://www.nation.com.pk/pakistan-n...-sdpi-report-suggests-renegotiating-gas-price

 

[Kompromat]

SDPI wants renegotiation of Pak-Iran gas deal

The News
Monday, 28th Oct 2013

Islamabad/Rawalpindi


The pricing formula for the Iran-Pakistan Gas Pipeline agreed upon in 2009 will be an economic death sentence for Pakistan, says the Sustainable Development Policy Institute (SDPI) report.

It is not too late to renegotiate the price however, as the report recommends to the Government of Pakistan to re-negotiate gas pricing with Iran.In 2007, Pakistan agreed on an average crude oil parity of 45 percent of crude oil parity but this saw a dramatic increase to an 85 percent crude oil parity under the 2009 Gas Sale Purchase Agreement (GSPA) with Iran, according to the report. Pakistan’s Economic Coordination Committee (ECC) on 10th April 2007, approved gas purchase formula, indexed with Japan Customs Cleared Crude (JCC), a crude oil price index. In year 2007, the average gas production price in Pakistan was $2.6 MMBTU.

"According to the agreed formula, the gas rate at the Pakistan border was to be $6.56. $7.06, $7.87 $8.6 per MMBTU and $9.3 in case oil prices increase to $80, $90, $110 and $1200 per barrel, respectively," says Arshad H. Abbasi, lead author of the report.

"The then Petroleum Secretary Finance Mr. Ahmad Waqar had briefed the media about the gas purchase formula."The Inter State Gas Systems (ISGS), representing Pakistan as buyer in this agreement, a company mandated by the Government of Pakistan to develop natural gas import projects and to serve as an interface between the GOP and other national and international agencies for the import and storage of natural gas in Pakistan, agreed to purchase natural gas from Iran at an average crude oil parity of 85 per cent.

"This means the Iranian gas at the Pakistan border would be US$15.38 per MMBTU, US$16.60 with correspondence USD 110 , $120 per barrel, respectively," according to the report.

This is contradictory to international gas pricing trends. The report looked at the Gas Sale Purchase Agreements between Spain and Algeria, United Kingdom and Norway, Spain with Norway and discussed the impact of oil crisis of 2008 on price of natural gas.

In June and July 2008, the crude oil price at Europe Brent Spot touched the figure of USD 132.32 per barrel, the correspondences; pipeline gas price was USD 9.55/MMbtu between Spain and Norway, USD 11.24/MMbtu between UK from Norway and USD 12.07/MMbtu respectively. This established that the then secretary petroleum and his brigade signed the highest percent of crude oil parity.

Pakistan’s team which negotiated the Pakistan-Iran Gas Pipeline Agreement failed to protect the country’s national interests, it seems when looking at this pricing formula.

Historically, Iran and Pakistan share centuries of history and have strong religious and cultural ties. Even Pakistan’s national anthem borrows its poetic vocabulary from Persian that percolates through Urdu. Pakistan is heavily influenced by the rich culture and language of Iran, and the two countries are not only neighbors, but also share brotherly ties. In this regard, it is incumbent upon the Government of Pakistan to renegotiate the price with this fraternal country and safeguard Pakistan’s national interests.

Looking at the report, it seems there needs to be the accountability of those responsible for this pricing agreement that could prove an economic death sentence for Pakistan.If the newly elected NAB chief wants to reinstate the image of the bureau as an effective body, it should rise to the occasion.

http://www.sdpi.org/policy_outreach/news_details1402.html

 

[Capt.Popeye]

SDPI wants renegotiation of Pak-Iran gas deal

The News
Monday, 28th Oct 2013

Islamabad/Rawalpindi


The pricing formula for the Iran-Pakistan Gas Pipeline agreed upon in 2009 will be an economic death sentence for Pakistan, says the Sustainable Development Policy Institute (SDPI) report.

It is not too late to renegotiate the price however, as the report recommends to the Government of Pakistan to re-negotiate gas pricing with Iran.In 2007, Pakistan agreed on an average crude oil parity of 45 percent of crude oil parity but this saw a dramatic increase to an 85 percent crude oil parity under the 2009 Gas Sale Purchase Agreement (GSPA) with Iran, according to the report. Pakistan’s Economic Coordination Committee (ECC) on 10th April 2007, approved gas purchase formula, indexed with Japan Customs Cleared Crude (JCC), a crude oil price index. In year 2007, the average gas production price in Pakistan was $2.6 MMBTU.

"According to the agreed formula, the gas rate at the Pakistan border was to be $6.56. $7.06, $7.87 $8.6 per MMBTU and $9.3 in case oil prices increase to $80, $90, $110 and $1200 per barrel, respectively," says Arshad H. Abbasi, lead author of the report.

"The then Petroleum Secretary Finance Mr. Ahmad Waqar had briefed the media about the gas purchase formula."The Inter State Gas Systems (ISGS), representing Pakistan as buyer in this agreement, a company mandated by the Government of Pakistan to develop natural gas import projects and to serve as an interface between the GOP and other national and international agencies for the import and storage of natural gas in Pakistan, agreed to purchase natural gas from Iran at an average crude oil parity of 85 per cent.

"This means the Iranian gas at the Pakistan border would be US$15.38 per MMBTU, US$16.60 with correspondence USD 110 , $120 per barrel, respectively," according to the report.

This is contradictory to international gas pricing trends. The report looked at the Gas Sale Purchase Agreements between Spain and Algeria, United Kingdom and Norway, Spain with Norway and discussed the impact of oil crisis of 2008 on price of natural gas.

In June and July 2008, the crude oil price at Europe Brent Spot touched the figure of USD 132.32 per barrel, the correspondences; pipeline gas price was USD 9.55/MMbtu between Spain and Norway, USD 11.24/MMbtu between UK from Norway and USD 12.07/MMbtu respectively. This established that the then secretary petroleum and his brigade signed the highest percent of crude oil parity.

Pakistan’s team which negotiated the Pakistan-Iran Gas Pipeline Agreement failed to protect the country’s national interests, it seems when looking at this pricing formula.

Historically, Iran and Pakistan share centuries of history and have strong religious and cultural ties. Even Pakistan’s national anthem borrows its poetic vocabulary from Persian that percolates through Urdu. Pakistan is heavily influenced by the rich culture and language of Iran, and the two countries are not only neighbors, but also share brotherly ties. In this regard, it is incumbent upon the Government of Pakistan to renegotiate the price with this fraternal country and safeguard Pakistan’s national interests.

Looking at the report, it seems there needs to be the accountability of those responsible for this pricing agreement that could prove an economic death sentence for Pakistan.If the newly elected NAB chief wants to reinstate the image of the bureau as an effective body, it should rise to the occasion.

http://www.sdpi.org/policy_outreach/news_details1402.html

Many people on this Forum were trumpeting the "IP Pipeline Project" to be some kind of "Manna from Heaven" for energy-starved countries like Pakistan. The above report very significantly and very clearly proves that it was not and cannot be so!
India walked out of the "IPI Pipeline Project" most notably for that reason: that the pricing formula for Iranian Gas was simply uneconomical and unviable. Apart from serious 'security concerns' about the pipeline itself. That stand resulted in the Project getting truncated into the "IP Pipeline" and that stand has got vindicated.

Of course the "nay-sayers" here; like @niaz, @argus_panoptes, @VCheng and a few others were just 'voices in the wilderness'........

Now let us wait for Haq to come up with another "a-musing" blog on this subject.

 

[Kompromat]

Many people on this Forum were trumpeting the "IP Pipeline Project" to be some kind of "Manna from Heaven" for energy-starved countries like Pakistan. The above report very significantly and very clearly proves that it was not and cannot be so!
India walked out of the "IPI Pipeline Project" most notably for that reason: that the pricing formula for Iranian Gas was simply uneconomical and unviable. Apart from serious 'security concerns' about the pipeline itself. That stand resulted in the Project getting truncated into the "IP Pipeline" and that stand has got vindicated.

Of course the "nay-sayers" here; like @niaz, @argus_panoptes, @VCheng and a few others were just 'voices in the wilderness'........

Now let us wait for Haq to come up with another "a-musing" blog on this subject.

It is very important project for Pakistan's energy woes, the issue of price will be worked out eventually.

 

[VCheng]

Many people on this Forum were trumpeting the "IP Pipeline Project" to be some kind of "Manna from Heaven" for energy-starved countries like Pakistan. The above report very significantly and very clearly proves that it was not and cannot be so!
India walked out of the "IPI Pipeline Project" most notably for that reason: that the pricing formula for Iranian Gas was simply uneconomical and unviable. Apart from serious 'security concerns' about the pipeline itself. That stand resulted in the Project getting truncated into the "IP Pipeline" and that stand has got vindicated.

Of course the "nay-sayers" here; like @niaz, @argus_panoptes, @VCheng and a few others were just 'voices in the wilderness'........

Now let us wait for Haq to come up with another "a-musing" blog on this subject.

I am not a nay-sayer Sir. I just tell it like I see it. The IP pipeline was, is, and will remain a pipedream, and will not contribute to helping solve our growing energy problems at all.

 

[Capt.Popeye]

I am not a nay-sayer Sir. I just tell it like I see it. The IP pipeline was, is, and will remain a pipedream, and will not contribute to helping solve our growing energy problems at all.

My apologies to you, Sir. You and @niaz sahab have always been realists. You had smelt the Coffee long ago. That great Scheme is a non-starter, negotiation or no re-negotiation. Lets see what transpires eventually.