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On 4 September 2012, the project was announced to commence before October 2012 and be completed by December 2014.
On 30 January 2013, the Pakistan's federal government approved a deal with Iran for laying the Pakistan's segment of a pipeline. On 27 February 2013, the construction of the Pakistani section was agreed. On 11 March 2013, inauguration of the construction works on the Pakistani section of the pipeline were inaugurated by president of Pakistan Asif Ali Zardari and president of Iran Mahmoud Ahmadinejad.[18][19][20][21] According with Javad Owji, managing director of the National Iranian Gas Company, the pipeline in Pakistan is expected to be constructed in 22 months with the participation of Iran.
On 27 May 2013, Iranian deputy minister for petroleum, A. Khaledi, in a letter to the Pakistan government expressed concern over the delay in the start of the Pakistani portion of the pipeline. He said that after a government-to-government agreement between the two countries, they were supposed to select entities for the construction of the latter part of the pipeline. Pakistan still hasn't officially nominated Tadbir Energy and local sub-contractors to begin work on the Pakistani half of the pipeline.
On 12 June 2013, the newly elected prime minister of Pakistan, Nawaz Sharif, allayed any fears regarding the abandonment of the project and said that the Pakistani government is committed to the fulfillment of the project and targets the first flow of gas from the pipeline in December 2014. The premier also stated that his government is planning to commit to the Turkmenistan-Afghanistan-Pakistan-India gas pipeline project as well.
On 28 November 2013, a 'friendly' country anonymously offers $1 billion to help fund the pipeline. [tribune.com.pk 1]
On 10-November-2013, a meeting between Pakistan Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi and Iranian Minister of Petroleum Bijan Namdar Zangeneh held at the Ministry of Petroleum at Tehran. The Pakistani Officials assured their Iranian counterparts that project would continue despite "external pressure".
On 25-Feb-2014, Minister for Petroleum and Natural Resources Pakistan, Shahid Khaqan Abbasi told the National Assembly that the project for the moment is off the table, he cited international sanctions as the issue, he said " In the absence of international sanctions the project can be completed within three years, but the government cannot take it any further at the moment because international sanctions against Iran are a serious issue". Pakistan will face the penalty if it failed to lay its side of pipeline till December 2014. Analysts however points at Saudi Arabia's pressure to not to carry out the project.
Iran–Pakistan gas pipeline - Wikipedia, the free encyclopedia
ISLAMABAD: Iranian Oil Minister Bijan Zanganeh on Tuesday said that his country was committed to go ahead with the controversial Iran-Pakistan gas pipeline project but a final decision in this regard would only be made after Pakistan relays its stance officially.
“Iran is committed to this gas agreement but until Pakistan has not officially relayed its stance, we cannot react and make a decision,” he was quoted as saying by the Mehr news agency.
In late October, Zanganeh had said he had “no hope” for the project, citing financial problems.
Meanwhile, Pakistan said that work on the pipeline cannot proceed because of sanctions imposed on Tehran by the United Sates and the Eurpeon Union.
Pakistani petroleum minister Shahid Khaqan Abbasi informed the National Assembly yesterday that the work on the pipeline was not possible because it falls under the sanctions imposed by the US and EU.
“In the absence of international sanctions the project can be completed within three years, but the government cannot take it any further at the moment because international sanctions against Iran are a serious issue,” he said without elaborating on how the sanctions could derail the project.
The Iranian side of the $7.5-billion project is almost complete, but Pakistan has run into repeated problems paying for the 780 kilometre (485 mile) section to be built on its side of the border.
Last year, Pakistan had asked Iran for $2 billion in financing to build its side of the controversial gas pipeline.
Iran has the second largest gas reserves in the world but has been strangled by a Western embargo that has seen its crude exports halved in the past year.
US officials had earlier warned that the Iran Pakistan pipeline project would risk triggering sanctions aimed at Iran.
The long-delayed pipeline that would link the two neighbours was planned to ease Pakistan's chronic gas shortages.
Iran currently produces around 600 million cubic metres of gas per day, almost all of which is consumed domestically due to lack of exports. Its only foreign client is Turkey, which buys about 30 million cubic metres of gas per day.
Former president Asif Ali Zardari and his Iranian counterpart Mahmoud Ahmadinejad had announced in February last year to complete the project in 15 months.
But analysts doubted the sincerity of the present government to follow up the venture because of close ties between the PML-N leadership and Saudi Arabia which is reported to be against the project.
Pakistan will have to pay a penalty if it failed to lay the $1.3 billion pipeline within its territory by December this year, but the petroleum minister told the house that the job could be done only after the lifting of sanctions against Iran.
Pakistan has been persuading Iran to review the timeline of the project.
The Karachi stock exchange took fright when the much-delayed section of pipeline was inaugurated in March last year. Spooked by fears of US sanctions, the main index slumped almost 2.5 per cent.
Pakistan has severe gas crisis as natural gas supply to homes and factories almost hit the dead end in winters and the consumers have to rely on the Liquid Petrobium Gas (LPG) cylinders.
The compressed natural gas (CNG), used as fuel in cars to improve environment and reduce cost also shuts down for three days a weak during the tight supply months in the most-populated Punjab province.
Many Pakistanis have converted their cars to run on CNG, depending on it as a cheaper alternative to petrol and diesel.
Iran committed to gas pipeline but decision after Pakistan response - DAWN.COM
Spokeswoman: Pakistan Prioritizes IP Gas Construction
TEHRAN (FNA)- Pakistani Foreign Ministry Spokeswoman Tasnim Aslam underlined that Islamabad is determined to complete its share of a multi-billion-dollar pipeline project that is due to take natural gas from Iran to Pakistan.
“Pakistan is serious and the Iranian government is aware of that,” Aslam said in her weekly press briefing in Islamabad on Thursday, adding that Pakistan remains committed to the project.
She underlined that Iran and Pakistan have had discussions and a number of options are under consideration by the two sides.
“We are considering a number of proposals together,” she stated.
In relevant remarks last month, Pakistani Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi underlined that completion of IP gas pipeline project is one of the most important priorities of Islamabad's economic development plans.
Addressing a ceremony for the grant of 12 petroleum concession agreements and exploration licenses to Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL), the Pakistani minister voiced Islamabad's willingness to implement the IP project which would transfer Iran's natural gas to the energy-hungry Southeast Asian country.
He further suggested that the timeframe set for commissioning the project should be extended.
Earlier this month, a Pakistani source said that talks on setting new timeframe for the completion of the much-awaited IP gas pipeline project was started in Tehran after Islamabad sent a team of experts and officials to the Iranian capital to this end.
Iran has already built 900 kilometers of the pipeline on its own soil and is waiting for the 700-kilometer Pakistani side of the pipeline to be constructed.
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.
IN February, Iran announced that it will send a delegation to Islamabad soon to pursue the construction of IP gas pipeline project in a bid to help the neighboring Muslim country overcome its energy crisis.
The Urdu-language Donya newspaper reported that the Iranian government has assured that Tehran will give a positive response to Islamabad’s request for extending the deadline for completion and implementation of the project of Iran-Pakistan gas transfer pipeline.
Farsnews
http://english.farsnews.com/newstext.aspx?nn=13921223000567
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