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

[my2cents]

I don't know why we are not letting this pipeline project go through. The Iran Pakistan gas pipeline should go through. We should improve our relations with Iran

You asked the same question on every page, read below given links.
http://www.thenews.com.pk/Todays-Ne...as-right-to-renegotiate-Iran-gas-price-Shahid
http://dawn.com/news/1051432/iran-gas-pipeline-not-in-favour-of-pakistan-report

why don't you guys buy the gas from India?? You will not have any sanctions plus we can negotiate the price which is acceptable for both.

 

[SBD-3]

I told you guys that settlement of Pak-Iran Gas pipeline will be a huge Pain in the ars of both countries

New Delhi: Iran is offering free delivery of crude to major
client India, industry sources said, signalling that tough
Western sanctions which have slashed its exports in half
are driving Tehran to increasingly desperate measures to
keep oil flowing.
The US has yet to ease the pressure on Asian buyers to
continue reducing purchases from the Opec member, even
though Iran and world powers began two days of talks on
Thursday hoping to reach a “first step” towards ending the
decade-old standoff over Tehran’s disputed nuclear
programme.
The drop in exports is costing Iran billions of dollars in lost
revenue every month. Tehran is also unable to repatriate
most of the money earned from oil it does manage to sell,
as the sanctions have cut off bank transfer facilities,
crippling its economy by choking off its biggest revenue
stream.
Despite the near halt of petrodollar payments, Iran is
resorting to measures such as offering deep discounts on
oil and now free delivery to India, according to sources who
requested anonymity because of the sensitivity of the issue.
Iran’s remaining Indian clients — Mangalore Refinery and
Petrochemicals Ltd, Essar Oil and Indian Oil Corp — could
save freight of 70 cents to $1 a barrel on purchases from
Iran, said one of the sources.
Tehran is also offering Indian buyers a discount on price if
refiners raise purchases, the sources said.
“The more you buy, the more incentives you get. If a refiner
buys 30 million barrels of Iranian oil in a year then the
discount translates to 25 cents per barrel,” this source
added.
Iran already offers 90 days’ credit on crude sales to Indian
refiners while most other producers stick to 30 days’ credit.
While any discount would be attractive as India tries to curb
an oil import bill that was around $170 billion (Dh624
billion) in 2012/13, it likely would be wary of raising
imports just prior to a review of its waiver from US
sanctions.
India’s six-month exemption comes up for renewal in early
December, shortly after top US energy diplomat Carlos
Pascual’s current visit to New Delhi.
Sources have said the US is unlikely to allow Iran’s exports
to rise before a deal is struck with Tehran. Both sides
involved in the Geneva talks have said a breakthrough was
far from certain.
India so far looks well on track to meet US conditions to
renew its waiver. Daily imports from Iran slid 34 per cent in
June-September from the six months between December
2012 and May 2013, data from trade sources shows.
India is one of Iran’s few remaining clients along with other
Asian buyers China, Japan and South Korea.
In India, there is about $5.3 billion of Iranian oil money held
up by the sanctions. Of the total, about $1.8 billion is with
the oil companies who have bought crude from Iran and the
remainder is held with a bank, sources said.
In South Korea, total Iranian money stuck in bank accounts
is more than $5 billion, a source with direct knowledge of
the matter said.
In Japan, a similar amount of Iranian oil money has been
held up since the beginning of the year, according to
sources.
Iran offers to ship crude to India for free | Pakistan Defence

It all seems happy snappy on paper and in news but financial dealing with Iran is a challenge since any bank that involved in financial transactions with Iran can kiss its foreign accounts (NOSTROs in technical terms) goodbye.
Iran-Pakistan Gas Pipeline | News & Discussions | Page 6 | Pakistan Defence

 

[Abu Zolfiqar]

Poor Punjabis are always targeted.

poor Pakistanis are screwed over by one government to the next - due to failed/flawed policies and administration

like i said -- software problem, not hardware 

I have no objection importing from Iran, but it shall be of international grade and shall use proper channel, so that data shall be available.
You know, smuggling is bad for local industry and it creates unemployment, and loss of revenue.

of course its bad! but its been going on for decades now

i have no objection either - if the pricing is also meeting the international market prices rather than zig-zagging

 

[niaz]

Natural gas is approximately 90% methane (CH4). No fears about that. But funds have been and will remain perpetual problem for Pakistan.

Iran is currently cash starved due to sanctions. If and when sanctions are lifted; $2-billion wouldn’t be that much of problem. Guess in addition to Israel which country is against lifting of US sanctions against Iran?

Our good friend Saudi Arabia.

 

[BATMAN]

Natural gas is approximately 90% methane (CH4). No fears about that. But funds have been and will remain perpetual problem for Pakistan.

Iran is currently cash starved due to sanctions. If and when sanctions are lifted; $2-billion wouldn’t be that much of problem. Guess in addition to Israel which country is against lifting of US sanctions against Iran?

Our good friend Saudi Arabia.

Seeking funds is Pakistan's right and Iran shall not blow things out of proportion. Iran should have thought of such modalities 10 years ago, when the discussions started as IPI pipe dream.

I only remember of reading news of seeking Russian financial support, but they never fired back over media.
Than why Iranian officials are making news headlines with falsifications?
Pakistan to seek Russian funds for IP gasline

What if Pakistan has funds available, should we award $500 million contract of pipeline construction to Iran govt. for $2 billion.

We make our own pipes and we have our on engineering companies, if Iran cannot invite our companies to build there side of the line than we shall also invite only local companies.

In the end, prime issue is the price of the gas and transparency in contract. I wonder what is wrong with cheap Turkmenistan gas, is that not CH4? 

I don't know why we are not letting this pipeline project go through. The Iran Pakistan gas pipeline should go through. We should improve our relations with Iran

I'm the biggest supporter of Iran pipe line, but they shall learn to compete in open market, this black mailing of Islamic regime helping Islamic regime shall end. 

poor Pakistanis are screwed over by one government to the next - due to failed/flawed policies and administration

like i said -- software problem, not hardware 


of course its bad! but its been going on for decades now

i have no objection either - if the pricing is also meeting the international market prices rather than zig-zagging

Only Punjabis and Pashtoons are the biggest enemies of evil.

Taliban to target Punjab and Sharifs, agencies warn all - thenews.com.pk

 

[Emmie]

The Iran-Pakistan pipeline: Finding the win-win for Pakistan

The government’s strategy on the IP pipeline has been dominated by the issue of financing the Pakistani leg of the pipeline, public pressurestemming out of acute power shortages and a political consensus that demands standing up to the threat of US sanctions. However, an overemphasis on these three factors should not hamper our ability to analyse other important dynamics involved in this project.


Indeed, the price at which Pakistan would contractually purchase Iranian gas is linked to international crude oil prices. Iran itself imports gas from Turkmenistan at USD 4/MMBtu while the price at which it would export to Pakistan is an exorbitant figure of USD 14/MMBtu. According to a recent report by Sustainable Development Policy Institute (SDPI), this would bring about a “death sentence” for Pakistan’s economy. Thus, if the pipeline project was to continue, Pakistan might end up having surplus supply of gas that consumers and local industry cannot even afford.

Moreover, Turkey, a current importer of Iranian gas still faces trouble getting adequate supply of gas from Iran during winter months, a time when Iran’s own domestic demand for gas peaks. On October 1, Iranian Oil Minister Bijan Namdar Zanganeh himself raised concern about Iran facing serious gas shortage because of slow progress in raising levels of production from South Pars – the field that is supposed to fill the IP pipeline. If such factors were seriously taken into account, the pipeline agreement would likely have never been signed at the first place.

In addition to exploring other options from Pakistan’s indigenous resources and renewable energy sector, the question that policymakers should now be asking is how the IP pipeline project can best come to an end so that Pakistan’s international standing is not damaged. It is thus important to explore the various exit strategies Pakistan could adopt and what implications each of them entails.

First, as Pakistan seems to do with other problems, politicians might be comfortable blaming the potential pullout on US pressure. However, this will not only prove unfavorable for the goal of reviving Pakistani-US ties, but will also seriously hamper the approval ratings of the new Pakistani government.

The second way out is to blame the previous government. While this option might be easy to digest, it has serious long-term repercussions. Holding the previous administration accountable for the failure creates a precedent in which a new Pakistani government can arbitrarily scrap an international agreement. This in turn creates a lack of trust among potential regional and international partners in Pakistan’s ability to see its agreements through from one administration to another.

The third possibility is to keep the project lingering. This will attract more energy aid projects from the United States and cheaper oil offers from Saudi Arabia. However, given that Pakistan will be liable to pay a $3 million per day penalty to Iran if its side of the pipeline is not completed by the end of 2014; this option is also not plausible.

The fourth possibility is to renegotiate the gas prices and the terms of the agreement with Iran. Though this option might be successful in de-linking gas prices from those of international crude oil, it would neither solve the financing issue nor the security concerns in regard to Balochistan.

These flawed options make the situation seem discouraging, in this conundrum lies a tremendous diplomatic opportunity which if articulated well could provide Pakistan with a win-win outcome.

Instead of provoking Iran’s anger by scrapping the gas pipeline deal without offering anything against it, Pakistan should replace it with another contract to import more Iranian-produced electricity. Pakistan is already importing Iranian electricity at Rs.10/unit and could enhance its import to the efficient levels of the current transmission capacity. Even increasing this capacity by building more transmission lines is a cheaper and a more viable option than to proceed with the IP pipeline project. Furthermore, it will also be in Iran’s interests to establish more power plants within the country which could be used for both, its domestic production and as well as for importing gas to Pakistan.

Meanwhile, pulling out of the project will also give Pakistan greater leverage with the United States and Saudi Arabia – the two staunchest opponents of the pipeline. Pakistan could use this leverage to procure favorable oil prices from Saudi Arabia, as well as assurances of heavy investment from the United States and other international partners to exploit shale gas and renewable energy such as solar, biomass, and tidal energy – sectors that are estimated to have tremendous potential. This will also improve Pakistan’s energy diversity and, in so doing, strengthen its energy security in the long run.

This exit strategy will allow the Pakistani government to save face without having to compromise its relations with either Iran or the United States. Additionally, it will increase the government’s ability to proceed with other necessary yet unpopular steps to put the economy on track. Even Iran will experience no short-term loss as a result of this plan; the 900 km pipeline it has completed on its side of the border is still necessary for its own domestic supply of gas.

 

[iranigirl2]

Iran pipeline contractual obligation, US told

WASHINGTON: As top US and Pakistani officials met here on Tuesday to consider plans for helping Islamabad overcome its energy crisis, Pakistan reminded the Obama administration that it was under “contractual obligations” to complete the Iran gas pipeline project.

Talking to Dawn, Minister for Water and Power Khawaja Muhammad Asif expressed the hope that improved relations between the United States and Iran would also ease American pressures on this issue.

Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said Pakistan was seeking new technology and investments from the United States to meet its ever increasing energy demands.

Earlier, top US and Pakistani officials and investors began a day-long meeting at Washington’s US Institute for Peace to discuss various proposals for enhancing bilateral cooperation in the energy sector.

“Building the Iran-Pakistan gas pipeline is our contractual liability,” said Khawaja Asif while explaining his government’s position on the controversial project. “If we do not, we will have to pay the penalty for breaching the contract.”

Without naming the US administration, the minister said that those who wanted Pakistan not to build the project “should be ready to pay the fines”.

A US law requires the Obama administration to oppose major foreign investments in Iran’s oil and gas industry. Those who breach the restrictions can face US sanctions.
Pakistan, however, insists that the pipeline project does not breach this law as Iran, and not foreign investors, were building the pipeline.

Last week, the US and Iran came close to reducing their differences which, Mr Asif said, was a good sign for the pipeline project.

The minister also said that Pakistan was committed to building both Dasu and Bhasha dams. “It is not either one or the other. We need both and we will build them with our resources if we do not get outside support,” he said.

Officials who attended the meeting said delegates also considered a proposal for the integration of energy infrastructure in South Asia, which can bring gas and oil from energy-rich to energy-starved nations. This includes encouraging energy cooperation between India and Pakistan and building the Turkmenistan-Afghanistan-Pakistan-India pipeline, which, unlike the Iranian project, enjoys US support.

Carlos Pascual, the US Special Envoy and Coordinator for International Energy Affairs, the two visiting ministers from Pakistan and the US ambassador in Islamabad, Richard Olson, co-chaired Tuesday’s meeting.

“The US and Pakistan have worked closely and on a sustained basis to better develop and diversify Pakistan’s energy sector, a key priority of the Pakistani government and people,” said a US official.

“The US has supported increased energy generation, improved distribution, management, revenue collection, and policy reform,” he added.

Other proposals discussed at the meeting include exploring alternate sources of energy and helping Pakistan develop its capabilities in those fields, including solar energy.

Shahid Khaqan Abbasi told Dawn that Pakistan was seeking technological cooperation from the US to tap its huge reserves of shale gas, which, he said, were the 9th largest in the world.

Iran pipeline contractual obligation, US told - DAWN.COM

 

[Ahmad1996]

As far I see if the price of gas is not renegotiated then buying gas from Iran would be useless as it would kill the Pakistani economy. Also if we see all the facts then its like Iran is trying to kill our economy. If you don't believe me then check out this. Also it is providing India discounts so why is it not giving us also discounts or just lower the price a little?

Port Of Damaged Goods: India's Dangerous Investment In Iran's Chahabar - Forbes 
Also instead of buying we should try to discover new reserves we have or develop them. 
Like these

Huge gas reserves discovered in Sindh, oil in KP

New gas reserves discovered in Sindh | Pakistan Today | Latest news | Breaking news | Pakistan News | World news | Business | Sport and Multimedia

New gas reserves discovered in southern Sindh: ministry | BUSINESS - geo.tv

 

[Ahmad1996]

Pakistan said to have large reserves of shale gas, oil - DAWN.COM

 

[Kompromat]

Iran ready to revise gas price for Pakistan - thenews.com.pk

 

[Ahmad1996]

it ain't the first time bro, last time it said

PressTV - No gas price renegotiation with Pakistan: Iran Oil Minister

Daily Times - Leading News Resource of Pakistan 
For Pakistan, more twists and turns in long-running Iran gas saga

 

[pak avatar]

Looking forward to hearing some good news in a couple of weeks on this after Iran nuclear agreement

 

[Kompromat]

 

[monitor12345]

The businessmen of Pakistan should put pressure on PML N government to complete this Iran Pak gas pipeline as soon as possible. Otherwise , this government is not going to complete this IP gas pipeline..... The Exports of Businessmen will increase if IP gas pipeline is completed.
What happened to the tiger of PML N ? He can't say face to face to US, that Pakistan needs gas & it will complete Iran Pak gas pipeline ... US will not put sanctions on Pakistan, atleast till NATO supply routes go through Pakistan... Pakistan should utilise this time period till 2014, and complete Pakistani side of IP gas pipeline....
If Pakistani side of IP pipeline can be divided into two parts & if each part is given to two different firms, then it is possible to complete Pakistani side of IP pipeline, in one year...

 

[SBD-3]

India would likely rejoin IP gas pipeline project
Indian Minister of External Affairs Salman Khurshid says his country may rejoin the multi-billion-dollar pipeline projected to carry natural gas from Iran to India via neighboring Pakistan.

“If there is seriousness from all sides, we are ready to import natural gas from Iran and Central Asia through Pakistan,” Khurshid said in New Delhi on Wednesday.

He further noted that such regional projects could create “inter-dependencies”, and would compel both Pakistan and India to have a long-term cooperative relationship.

On May 4, 2013, Khurshid voiced New Delhi’s willingness to reenter negotiations over the IP (Iran-Pakistan) gas pipeline project.

Under the original agreement sealed between Iran and Pakistan, the first Iranian gas delivery to Pakistan should start by December 31, 2014.

The two countries are also responsible for the completion of the pipeline project within their territories, and if Pakistan does not fulfill its obligation to complete the pipeline on its side by the end of 2014, it will have to pay a daily penalty of USD 1 million to Iran until the project is completed. Iran has agreed not to penalize Pakistan for missing the deadline.

Iran has already built its 900-kilometer share of the pipeline on its own soil and is waiting for the 700-kilometer Pakistani side of the pipeline to be built.

The United States has long been threatening Pakistan with economic sanctions if Islamabad goes ahead with the pipeline project. However, the government of Pakistan has made it clear that addressing the country’s longstanding energy problems will be its top priority, and it has no plans to reverse the decision on the completion of the IP pipeline.

The IP pipeline is designed to help Pakistan overcome its growing energy needs at a time when the country of over 180 million people is grappling with serious energy shortages.

Iran and Pakistan signed an agreement over the construction of the IP gas pipeline, also known as the Peace pipeline, in 1995. Later, Iran made a proposal to extend the pipeline from Pakistan into India. In February 1999, an accord between Iran and India was signed.

But due to the US pressure, India withdrew from the project in 2009.

MP/NN
PressTV - India would likely rejoin IP gas pipeline project