Iran-Pakistan Pipeline: News & Discussions

[Abu Zolfiqar]

@ Krait


TAPI is a pipe dream only yaara..... feasibility assessment was done ages ago.

Daultabad field of Turkmanistan was not correctly evaluated, South Pars was correctly evaluated. Daultabad field is already providing gas to Russia. Its not feasible to invest $7 Billion on it. TAPI is a waste of time, its just Asian Development Bank and US which are interested in it. But if it progresses and they can provide for Pakistan's shortfall at reasonable rate then I'd be for it.

but to me at least IP pipeline makes a hell of alot more sense.....sooner or later the West will have to talk to Iran and open channel for dialogue. These games being played just to please israel shouldnt take precedent over prospect of cooperation with a large and fairly influential Muslim country. What the hell are they accomplishing with sanctions anyways, apart from screwing over regular Iranians on the street who have nothing to do with the politics.

 

[TVVELVEMO$]

Mr. BATMAN; you like persistent questioneering, eh?

In Big OIL, longterm investment can mean a few things. It can be capital cost which leads to meaningful revenues, e.g. If Iran has no pipeline then it cannot sell any gas. So if there is only One buyer who cannot/will not pay for building a pipeline, Iran builds it for that country, in order to begin selling gas and making money. Iran can treat it as a sunk cost without which Iranian gas reserves are just hot air in the ground-and gas dissipates in time. In case of PARS field, Qatar is already selling her share of gas while Iran is not so successful. So it makes perfect economical sense for Pakistan to ask for cheap gas via pipeline.

As for your comment on sanctions, per se there are no sanctions on buying gas (only Oil). That is why Pakistan is angling for a techno-legal "out". Nevertheless, Iran believes the sanctions are unjustified, and unsustainable by the western nations. Chinese are already getting oil at great concession due to this.

I did NOT say President of US will be calling Mr. Zardari to simply "not buy" the gas. International relations are not conducted as such. Your Finance Chief is headed to Washington, DC in a few weeks. He will be asking for Coalition Support funds, Kerry-Lugar monies, and a US nod to World Bank for loans (all this instead of putting one's own house in order and taxing the plutocrat rich Paks). It is more than likely that US will ask for a quid pro quo-you get what 'm sayin.

I do not know how many times your nation has eschewed from her commitments. I can tell you you are late on many payments, e.g. $300 million on Kot Addu Power. That is flirting with bankruptcy in international market jargon.

Pakistan was originally a transit plus a consumer nation. Now it is the destination. Iranians are looking at other non-specified benefits from this project. They hope to force India to join in lieu of Chabahar berthing privileges. Keep your fingers crossed and watch this drama unfold in your neighborhood. You are trying to get China to join in. Then Bangladesh wants in, by some reports. Iranians also are competing with Abu Dhabi Crude Oil Pipeline (ADCOP) from Abu Dhabi to Fujairah. They want to show their arab counterparts that they can play the pipeline game too. If I were negotiating, I would get you a refinery for almost FREE!

You see manufacturers of combat aircraft like Pakistan bring their products to Aviation shows and like to announce sales. Oil producers like to build refineries and pipelines to sell oil quickly and cheaply. Incidentally, an oil/gas pipeline will make Pakistan immune from naval blockade by INS "whatever". You can also use that pipeline to buy oil/gas from Iraq and\or Turkmenistan and bypass Afghanistan. (This may be a little tricky for you to understand but please do try).

Finally, Iranians are NOT investing in YOU, but in their own national interests and in their own Oil/gas Industry. Hope that helps.
No one is giving Pakistan a free lunch here. However, you do need to leverage the situation in your favor-do not ask how! Figure it out.

I really do not know about rice traders in Iran nor do I care.

Cheers!

 

[BATMAN]

^^ Good attempt!

Now some answers:

I have no awareness, how was the $300 million kot addu project, still pending. but you are welcome to check how much loan Pakistan has received in last 4 years (estimated $20billion), which only reflect confidence of financial institutes over Pakistan's economy, shooting above the roof.

Today Pakistan paid IMF Pakistan repays $394m to IMF Pakistan Business

While on transit issue, no foreign nation or national have the right to decided about our purpose.

The arrest of Pakistani men was a tiny news in business related news papers.

Iran arrests Pakistani, seizes rice worth $500000 - Business Recorder (blog)

 

[Edevelop]

Pak-Iran Zindabad.

 

[KRAIT]

@ Krait
TAPI is a pipe dream only yaara..... feasibility assessment was done ages ago.
Daultabad field of Turkmanistan was not correctly evaluated, South Pars was correctly evaluated. Daultabad field is already providing gas to Russia. Its not feasible to invest $7 Billion on it. TAPI is a waste of time, its just Asian Development Bank and US which are interested in it. But if it progresses and they can provide for Pakistan's shortfall at reasonable rate then I'd be for it.
but to me at least IP pipeline makes a hell of alot more sense.....sooner or later the West will have to talk to Iran and open channel for dialogue. These games being played just to please israel shouldnt take precedent over prospect of cooperation with a large and fairly influential Muslim country. What the hell are they accomplishing with sanctions anyways, apart from screwing over regular Iranians on the street who have nothing to do with the politics.

Agreed. Your assessment of TAPI is justified. IP or if IPI materializes it will good for the region. I still think India won't be able to get gas from Iran or Turkmenistan via Pakistan. Not gonna happen in near future. But I think I would keep India out of this issue right now.

IP looks promising but we know US won't change its stance in near future. They don't care about Iranian people. Well, they never cared about any people except their own or Israelis. Iran has shown signs for more discussion over nuclear issue but US loosening its hold over nuclear issue is again not expected in near future.

I think Pakistan should somehow bring China into the equation with more stakes. We have seen US backing down in case of Philippines (of course, the reason and situation was different but stating for highlighting China's weight in today's world economy and political circle). Iran already have good relations with China. Its up to Pakistani govt. to use some politics to indirectly but effectively change US stance over this pipeline by using its relations with China.

Only way to effect a super power is by piggy backing on another super power.

 

[BATMAN]

Pak-Iran Zindabad.

Exactly, our relationship.... shall not be bogged down by a pipe line.

Put it on some tankers and start making bucks.

 

[A.Rafay]

KARACHI: The outgoing Consul General of Iran to Pakistan Abbas Ali Abdollahi hopes that the Iran-Pakistan (IP) gas pipeline will go a long way in promoting new investment opportunities and increase in mutual trade volume between both countries.
Speaking at a farewell reception hosted by Tariq Sayeed, chairman of the Pak-Iran Business Council, the envoy disclosed that Iran had already laid 1,200-kilometre pipeline from Bunder Abbas to the Balochistan border; however, Pakistan had yet to implement the project in its area.
He said that the Iran Melli Bank and the National Bank of Pakistan should establish branches in Pakistan and Iran respectively. He offered to supply cheaper electricity to Pakistan. He proposed that Pakistani investors and exporters should hold exhibitions at Zahidan, Iran and other parts of the Iran, for which Iranian government will extend full support and cooperation.
The consul general said he did his best to bring the two countries closer. He added that Pakistan and Iran possess a rich common culture which can be exploited for increase in business relations for creation of employment opportunities.
In his speech, Sayeed underscored the need to remove non-tariff barriers, reduction in tariff rates, explore and exploit huge trading potential between the two bordering neighbour countries and formation of Pakistan-Iran joint business chamber to tap investment opportunities together.

Iran hopeful IP pipeline will boost joint ventures – The Express Tribune

 

[VCheng]

Isn't Ahmedinijad going to sign a deal providing $500 million dollars worth of financing to Pakistan soon?

 

[Sugarcane]

ISLAMABAD: A team of Pakistani officials will leave for Iran on Friday (today) to make headway on a $500 million financing deal extended by the Iranian government for the Iran-Pakistan (IP) gas pipeline project.

“After finalising the total arrangement, the petroleum ministry will seek approval from the cabinet in order to move ahead on the financing plan for the IP gas pipeline project,” sources said.

According to sources, Adviser to Prime Minister on Petroleum and Natural Resources Dr Asim Hussain will lead the Pakistan team. Mubeen Sulat, managing director of Inter State Gas Systems, will also be part of the delegation.

During Iranian President Mahmoud Ahmadinejad’s visit to Pakistan for the Developing-8 Summit, an Iranian team had also visited the country to finalise the draft of the Inter-Governmental Cooperation Agreement on Engineering Procurement Construction (EPC) works.

The Pakistani side was informed during the visit that $250 million in financing for the IP project, on a government-to-government basis, was confirmed; whereas the Iranian government is moving to settle some issues with Iranian commercial banks to provide another $250 million. “During the upcoming visit of the Pakistani team, the arrangement of the total $500 million will be finalised after issues with Iranian commercial banks are settled,” sources added.

Pakistan will avail this financing to lay its portion of the gas pipeline. Iranian companies will carry out the construction in a joint venture with Pakistan’s gas utilities: Sui Northern Gas Pipelines and the Sui Southern Gas Company.

IP gas pipeline project: Officials depart today to finalise $500m loan deal with Iran – The Express Tribune

 

[VCheng]

ISLAMABAD: A team of Pakistani officials will leave for Iran on Friday (today) to make headway on a $500 million financing deal extended by the Iranian government for the Iran-Pakistan (IP) gas pipeline project..............

IP gas pipeline project: Officials depart today to finalise $500m loan deal with Iran – The Express Tribune

Good Luck to the team. Let's see what they are able to come up with.

 

[Sugarcane]

Good Luck to the team. Let's see what they are able to come up with.

Hope for best - IP is important for Pak for fulfilling energy needs and than earning transit money in future

 

[VCheng]

Hope for best - IP is important for Pak for fulfilling energy needs and than earning transit money in future

Yes, I agree that fulfilling Pakistan's growing energy needs is important, but I do not think the chances for realizing the IP (or the IPI) project are very high.

 

[Sugarcane]

Yes, I agree that fulfilling Pakistan's growing energy needs is important, but I do not think the chances for realizing the IP (or the IPI) project are very high.

It can be IPC - you never know

 

[VCheng]

It can be IPC - you never know

No Sir. There is no chance a pipeline can go over the Karakorums to China in any viable way. None, as in ZERO.

 

[Sugarcane]

No Sir. There is no way a pipeline can go over the Karakorums to China in any viable way. None, as in ZERO.

hmm.... Ok - But still it's crucial for our energy needs - Industry is destroyed because of energy shortage. An-other advantage is that being a customer Iran's stakes will be in stability of Pakistan... If you know what i mean.