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

[BATMAN]

Pipeline project is the most simple project, one could imagine.
SNGPL have done it all the times. Its not a high tech job.
One wonder, why Zardari and Iran wasted all the time.
On the other hand, any gas more the $3/mmbtu and construction contract of the pipeline inside and out side Pakistan should be awarded to Pakistani company, because we will be buyers.
While India should be kept out as its an enemy state.

 

[Chak Bamu]

It is good if India joins this project. Not only would a part of the cost of this project be borne by India, but also Indians might be able to negotiate a better deal with some benefits accruing to us as well.

Economic integration of South Asia with Iran & possibly beyond can only be a good thing. Economic linkages reduce risk of war and misadventure.

 

[Kompromat]

Congress will be kicked out, if BJP wins, they won't rejoin the pipe, regardless of how feasible it is for them.

IPI,TAPI,C.Asia corridor. When Indian dependance on Pakistan grows, so will its trust. Maybe we can use that trust to bring a permanent solution to Kashmir etc

 

[acid rain]

It is good if India joins this project. Not only would a part of the cost of this project be borne by India, but also Indians might be able to negotiate a better deal with some benefits accruing to us as well.

Economic integration of South Asia with Iran & possibly beyond can only be a good thing. Economic linkages reduce risk of war and misadventure.

True...but I am sceptical about this press tv report for want of a better source. With elections round the corner every policy decision is in limbo. A new, possibly a BJP govt may go for it positively. There is also talk of a pipeline via sea linking Iran, Oman to India and this deal is under study.

 

[jarves]

lol why nobody is reporting this news that India will join IP project?

 

[AhsanAmin]

Sharif govt puts Iran pipeline 'off the table'. | Page 6

Turkey voices will to expand energy deals with Iran during PM Erdoğan’s visit - ECONOMICS

An excerpt from the article says

Iranian officials say trade between the countries stood at $22 billion (16.2 billion euros) in 2012, before dipping to $20 billion in 2013. It is expected to reach $30 billion in 2015.

Iran was Turkey’s third largest export market in 2012. In fact, Iranian media reported, Turkey exported more than 20,000 products to Iran, among them gold and silver.

The gold trade boomed in 2012 when Ankara was paying for Iranian natural gas and oil imports with the Turkish Lira and Tehran was using those deposits held in Turkey’s state-run Halkbank to buy gold.

Some of the gold was held inside Turkey at the peak of the trade while some was taken to Dubai by couriers to be sold for foreign currency that was urgently needed by Iran as sanctions increasingly cut off access.

We can easily trade with Iranians on a similar model. And the volume of trade between two countries can easily hit 10-15 billion dollars in a few years. If Iranians were being paid for gas in Pak Rupees(as Turks did in Lira), they would be importing huge value of goods and services from us.

We always get short sold by gifts of a Billion dollars or so, we should instead choose the trade that can achieve monumental levels in a decade and will have far lasting effect on the economy of our country.

 

[kamrananvaar]

China and Russia signed a momentous deal in May 2014. China agreed to purchase $400 billion of natural gas from Russia. This strategic deal comes as Russia finds itself isolated due to tensions with Ukraine. The deal should help China ease its gas shortages and reduce its dependence on coal.

The Russian government–controlled Gazprom will supply 38 billion cubic meters of gas annually to state owned China National Petroleum Corp., which will cater to almost one-fourth of China’s current annual gas consumption (150 billion cubic meters).

U.S. Treasury Secretary Jacob Lew has appealed to China to desist from taking steps that might be contrary to sanctions. However, the government has recognized China’s need for energy.

Source: BRICS are drifting away from US and European monetary structures

The question is why pakistan is not doing its best and get the gas pipeline completed , usa has to understand pakistans energy needs

 

[Sugarcane]

The question is why pakistan is not doing its best and get the gas pipeline completed , usa has to understand pakistans energy needs

Our diplomats work more for other countries than Pakistan.

 

[AZADPAKISTAN2009]

lol 400 Billion one go , that is big spending power

 

[Kambojaric]

The question is why pakistan is not doing its best and get the gas pipeline completed , usa has to understand pakistans energy needs

There is no such thing as empathy let alone sympathy in international politics especially when it comes to the US. According to US foreign policy right now it is in their perceived national interest to isolate Iran and any other country associated with it so as to further their own influence in the wider region. Trying to make the US understand "Pakistans energy needs" wont thus feature very high on their list of "important things to do".

 

[Pakistani shaheens]

Pakistan says it will buy gas from Iran after two years



Tehran, Iran: Pakistan will buy gas from Iran after two years. Iran says that Iran Pakistan Gas Pipeline known as IP Gas Pipeline project is not dead yet and Pakistan has asked Iran for two more years to buy gas from Iran.

This was said by Iranian Oil Minister Bijan Namdar Zanganeh on Tuesday while talking to reporters on the sidelines of an economic forum in Tehran.

“The Pakistanis have asked for a two-year extension of the deadline and we have not rejected their demand; some legal negotiations are, of course, needed between the two sides,” Zanganeh added.

“Pakistani government has presented a new proposal to the Iranian Oil Ministry for the settlement of a dispute over the implementation of Iran-Pakistan (IP) gas pipeline project. In their proposals, the Pakistanis have offered different solutions for accelerating the construction of IP pipeline and have demanded action on the issue. The details of the proposal are being studied,” said Majedi.

 

[Asian.Century]

Paying the price: Gulf eyes Iranian gas as Pakistan delays imports

By Zafar Bhutta Published: September 1, 2014

Iran and Oman have sealed a $60-billion agreement under which Muscat will purchase natural gas from Tehran over the next 25 years. PHOTO: STOCK IMAGE

ISLAMABAD: The real war between Iran and the United States, which is supported by many European countries, appears to be over energy supply deals. Under some projects, Iran will be connected to European states, Oman, Iraq and Kuwait by sharing its vast energy reserves.

Iran and Oman have sealed a $60-billion agreement under which Muscat will purchase natural gas from Tehran over the next 25 years. The project includes laying a pipeline costing $1 billion across the Gulf.

The agreement was reached during the visit of Iranian President Hassan Rouhani to Muscat in March this year. Around 50% of the gas to be exported to Oman, will be transported onwards to Japan, South Korea and India.

In June, Kuwait became the second country in the Gulf that announced its desire to buy natural gas from Iran, which sits on one of the largest gas reserves in the world.

The eagerness for energy cooperation comes in the backdrop of a historic deal between Iran, the US and five other world powers over the former’s nuclear programme on November 24 last year. Iran accepted strict constraints on the nuclear programme for the first time in a decade in exchange for partial relief from sanctions.

Later in December, Turkish Energy Minister Taner Yildiz said in a statement Iran was planning to lay a pipeline to ship gas to European nations that were interested in imports. If the programme is agreed and the US and other world powers reach some arrangement with Iran, Pakistan’s long-standing hopes of importing Iranian gas may be finally buried.

The Iran-Pakistan (IP) gas pipeline has been stuck for years in the wake of US threat of sanctions. Though Islamabad sought some concessions from the US to clear the way for building the pipeline, but the request was rejected outright.

The deadline – December 2014 – for the start of gas flow under the IP project is approaching fast and Pakistan may face penalties of millions of dollars every day in case of failure to complete its part of the pipeline. Iran has laid its portion of the pipeline.

In place of Iranian gas imports, the US has suggested that Pakistan should consider purchasing liquefied natural gas (LNG) from Qatar and other sources, but it is not a cheaper source of energy.

Crucial talks in Sept

The PML-N government, however, is trying to make some arrangements with Iran to win an extension in the deadline and keep the project alive. The two sides are expected to meet next month to discuss some important proposals, which may pacify the Iranian government, which is upset over failure of Islamabad to start work on the project.

Pakistan insists that it could not press ahead with the project due to the lingering threat of sanctions. Now, it has proposed to Tehran to construct the pipeline from the Gwadar Port under the guise of LNG export, which could be connected to Iran after the sanctions are lifted.

According to an official assessment, the gap between demand and supply of gas is widening in Pakistan and production is expected to drop to about half the existing levels by 2020 if new reserves are not tapped and output is not increased from existing fields.

Gas production will fall from the current 4.47 billion cubic feet per day (bcfd) to 2.53 bcfd in 2019-20 if fresh supplies are not injected into the system.

Experts are of the view that Pakistan should tackle the issue strategically and take it up again with US authorities. They ask why Islamabad is being pressurised when other countries are clinching deals with Iran.

These countries have made economic policies part of their foreign policies and Pakistan should also follow them in securing energy supplies. Otherwise, it will lose an opportunity to secure cheaper gas imports and its economy will collapse under the weight of energy shortages.

The writer is a staff correspondent

Published in The Express Tribune, September 1st, 2014.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

 

[SBD-3]

 

[FaujHistorian]

Good stance.

As long as there are Ayatullahs are under sanctions, how could they even sell that gas to Pak.

How would they get paid in return? Wheat and mangoes and oranges?

How?

 

[Norwegian]

Was it Saudi proposal?