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

[Capt.Popeye]

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

MAYBE so ?!?

However: on the other side of the border, the "noises" seem to be different:

Minister: Iran May Drop Gas Pipeline Project with Pakistan
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TEHRAN (FNA)- Iran's top oil ministry official announced on Wednesday the country is likely to give up on the multi-billion-dollar pipeline project which was due to take its rich gas reserves to energy hungry Pakistan.
"The contract for supplying gas to Pakistan is likely to be annuled," Iranian Oil Minister Bijan Namdar Zanganeh told reporters on the sidelines of a gas forum here in Tehran on Wednesday.

Zanganeh did not state any further details in this regard.

The pipeline is almost complete on the Iranian side long ago, but the Pakistani side, which has long been under the United States' heavy pressures to give up the project, has been short of financing. Pakistan has run into repeated problems to pay for the 780 kilometer (485 mile) section to be built on its side of the border.

In a recent demand, the Islamabad officials demanded Iran to finance their part of the project as well.

Yet, earlier this week Pakistani Foreign Ministry Spokesman Aizaz Chaudhry once again reiterated that Islamabad is resolved to pursue expedition of the pipeline project.

“It (IP) should be seen in the context of acute energy crisis that we have in our country,” said the Pakistani official, adding that his government is pursuing the case to accelerate the implementation process of the project.

Early in October, Pakistani Petroleum and Natural Resources Minister Shahid Khaqan Abbasi asked Iran to finance $2bln in the construction of Pakistan’s side of the IP gas pipeline project.

The Pakistani petroleum minister said preparatory work was complete, but they had asked Iran to provide $2bln for the construction work.

Iran and Pakistan officially inaugurated the construction of the border part of the multi-billion-dollar gas pipeline project in March.

The project kicked off in a ceremony attended by former Iranian President Mahmoud Ahmadinejad and his former Pakistani counterpart Asif Ali Zardari at the two countries' shared border region in Iran's Southeastern city of Chabahar.

The 2700-kilometer long pipeline was to supply gas for Pakistan and India which are suffering a lack of energy sources, but India has evaded talks. In 2011, Iran and Pakistan declared they would finalize the agreement bilaterally if India continued to be absent in the meeting.

Iran has already constructed more than 900 kilometers of the pipeline on its soil.

According to the project proposal, the pipeline will begin from Iran's Assalouyeh Energy Zone in the South and stretch over 1,100 km through Iran. In Pakistan, it will pass through Baluchistan and Sindh but officials now say the route may be changed if China agrees to the project.

 

[A1Kaid]

The pipeline is almost complete on the Iranian side long ago, but the Pakistani side, which has long been under the United States' heavy pressures to give up the project, has been short of financing. Pakistan has run into repeated problems to pay for the 780 kilometer (485 mile) section to be built on its side of the border.

In a recent demand, the Islamabad officials demanded Iran to finance their part of the project as well.

Every Pakistani family living in a city should be taxed immediately, this is despicable.

 

[Bhai Zakir]

Pakistan gas contract probably dead, Iran minister says

DUBAI: Iran will probably abandon a multibillion-dollar contract to supply gas to Pakistan, the semi-official Fars news agency reported Iran's oil minister as saying on Wednesday.

"The contract for supplying gas to Pakistan is likely to be annulled," Fars quoted Iranian oil minister Bijan Namdar Zanganeh as saying on the sidelines of a gas forum in Tehran on Wednesday. He gave no other details, Fars said.

Under the contract, Iran is supposed to export 21.5 million cubic meters of gas per day to Pakistan from next year.

Dubbed the "peace pipeline", the $7.5 billion project has faced repeated delays since it was conceived in the 1990s to connect Iran's giant South Pars gas field to Pakistan and India.

Iran has already spent hundreds of million or dollars and nearly completed the 900km (560 mile) pipeline to the Pakistan border.

Pakistan, although suffering from severe gas shortages, has made little progress on its part of the line due to a lack of funds and warnings it could be in violation of US sanctions on Iran.

Zanganeh's comments came two days after his Pakistani counterpart, Shahid Khaqan Abbasi, was quoted by local media as saying that Pakistan risked being punished by sanctions on Iran if it goes ahead with the much-maligned project.

Until now Iranian officials have insisted that the project to supply Islamabad will be completed.

Exasperated by the lack of work across the border, Iran has even offered to build Pakistan's 780km section and provide multi-million dollar loans to help pay for it, according to Iranian media reports.

In contrast to his predecessor, Zanganeh has been open about the problems faced by Iran's energy sector since he took office in August.

On October 1 he warned that Iran faced serious gas shortages of its own because of slow progress in raising production from South Pars, the field that is supposed to fill the pipeline.

India quit the project in 2009, citing costs and security issues, a year after it signed a nuclear deal with Washington.

Iran sits on the world's largest reserves of gas. But Western sanctions aimed at stopping Iran's disputed nuclear activities have hindered its gas production growth, while the United States has pressured potential buyers to find other suppliers.

http://timesofindia.indiatimes.com/...d-Iran-minister-says/articleshow/24947666.cms

 

[Bhai Zakir]

I have proved right that this pipeline will never happen and pakistan can't go against the US of A.

 

[T90TankGuy]

What ever you say about our politicians in India at least they don't bow down to outside pressure like our neighbors do .

 

[Chak Bamu]

This is just posturing before re-negotiation. Iran wishes to connect with Pakistan and India too. Pakistan wants this too. As I remarked earlier, it is all about price. I am sure both Pakistan and Iran would agree on a more equitable price formula. Iranians have invested heavily in this project. They want the influence and money that would come out of this project.

I love the fact that Pakistan asked Iran to finance our part of the pipeline. Classic...

 

[Capt.Popeye]

I have proved right that this pipeline will never happen and pakistan can't go against the US of A.

But the title of the thread is not very correct,
The Gas Contract is not probably dead.
It was "Gas" and is still a whole load of "Gas".........

Nobody can afford Iranian Gas at the prices being quoted. Least of all an Economy that is in the ICU and which needs the "IMF Ventilator" to stay alive.

 

[A.Rafay]

What ever you say about our politicians in India at least they don't bow down to outside pressure like our neighbors do .

haha what a joke! india was the first to bow down under pressure from USA and backed off from IP pipeline, lost interest after US pressure.

 

[praveen007]

haha what a joke! india was the first to bow down under pressure from USA and backed off from IP pipeline, lost interest after US pressure.

^^^ no India Was not opted because of USA, but Because of Pakistan,
India wanted a Under Sea Pipe line which is costly but due to pakistanis offering a new Cheep route Iranians forced us to considered this, but the Better thinking privelled and we did not jumped into the Blackmale trap of Pakistan...
we are better without Iranian OIL till its not commingto us from Pakistani Route.

 

[A.Rafay]

^^^ no India Was not opted because of USA, but Because of Pakistan,
India wanted a Under Sea Pipe line which is costly but due to pakistanis offering a new Cheep route Iranians forced us to considered this, but the Better thinking privelled and we did not jumped into the Blackmale trap of Pakistan...
we are better without Iranian OIL till its not commingto us from Pakistani Route.

US pressure was the only thing which made india opt out from this pipeline, Pakistan rejected US pressure and still is commited to the pipeline but we have difficulty in collecting funds for it because Iran is under sanctions.

 

[[Bregs]]

This pipeline can be revived if US - Iran talks progress to next level and some agreement on nuclear issue

 

[praveen007]

US pressure was the only thing which made india opt out from this pipeline, Pakistan rejected US pressure and still is commited to the pipeline but we have difficulty in collecting funds for it because Iran is under sanctions.

no it was not the pressure of USA but of local opposition and citizens pressur who do not want important things such as GAS to be on terms of country such as pakistan , which do not have good relations with us, so its utter BS to say that we opted out of it because of USA....

Indians are still open to under sea pipeline from Iran, and waiting for the time till Iranians hope on Pakistani assurance of roaping China in this project to fall flat then they will move to again table that project.

 

[Bhai Zakir]

US pressure was the only thing which made india opt out from this pipeline, Pakistan rejected US pressure and still is commited to the pipeline but we have difficulty in collecting funds for it because Iran is under sanctions.

This is what most of people in pakistan believe and no power on earth or heaven can make them believe otherwise.

 

[FarazUSA]

This pipeline can be revived if US - Iran talks progress to next level and some agreement on nuclear issue

The issue is not so much of the US sanctions but also of the absurdly high price of the Iranian gas which we
are not willing to pay for.

 

[aliijaz89]

India had Israel to back her, thats why India made contract with Iran for oil despite of US sanctions. Israel is more powerful than US. Pakistan is still afraid of US thanks to our puppet leaders