Pak-Iran gas project

[AZADPAKISTAN2009]

Pak-Iran gas pipeline pacts to be signed
Pakistan and Iran will sign on March 16 three agreements for supplying about 750mn cubic feet a day (mmcfd) of Iran gas to Pakistan by 2014. The agreements will be signed in Turkey. According to a senior official yesterday, the heads of agreement, gas price agreement and condition precedent agreement will set off physical work on the Iran-Pakistan gas pipeline project. Ejaz Chaudhry, additional secretary of petroleum and natural resources, has told the National Assembly’s standing committee on petroleum that a sale and purchase agreement had already been signed for supply of 750mm cfd of gas to Pakistan in 2014.


Iranian President Mahmud Ahmadinejad and his Pakistani counterpart, Asif Ali Zardari, signed a US$7.5 billion agreement in Tehran on May 23, 2009, to transfer gas from Iran to Pakistan. This will be a follow up to conclude the deal

2014, Pakistani homes will get cheap gas options and energy for our power grids

 

[Desert Fox]

InshaAllah this will be a success!

 

[Hyde]

2014, Pakistani homes will get cheap gas options and energy for our power grids

I shared this news couple of days ago

And your above comment is wrong. It has nothing to do with Cheap gas...... in fact the gas we produce from "Sue" is almost 3 times cheaper than this. The good news is that we will not need to face the shortage of gas like the electricity. There should not be gas load shedding after the successful completion of this project and this gas will also be used to generate electricity so it will reduce the burden of electricity also

 

[pkd]

IP gas pipeline project: final accord signed

ISLAMABAD: Pakistan and Iran inked a final agreement on Iran-Pakistan gas pipeline project today in Istanbul. Two countries signed the Heads of Agreement (HoA) and certain Conditions Precedents (CPs) to make the Gas Sales Purchase Agreement (GSPA) effective.

Federal Petroleum Secretary Kamran Lashari signed the agreement on behalf of Pakistan government.

The GSPA became effective to kick off the work on the project. The signing of these agreements was required for flow of Iranian gas towards Pakistan.

Two countries signed GSPA on IP gas pipeline project on June 5, 2009 in Istanbul, Turkey. The agreement was signed in a third country because it is governed by French law, denying any advantage to Iran or Pakistan in case of any dispute.

Under the GSPA, Iran would provide 750 million cubic feet of gas per day to Pakistan for the next 25 years, which would generate 4000MW of electricity.

Iranian delegation visited Pakistan on August 31 on the IP gas pipeline Operations Agreement (OA). After four days of negotiations, the Operations Agreement was initialed on September 3, 2009.

http://thenews.com.pk/updates.asp?id=100877

 

[Spring Onion]

very good.

 

[Hyde]

thank god................ and i hope i don't hear after another 2 months that another accord is going to be signed

And i hope the price for Natural gas remains cheap.......... i trade Crude oil and gas every week and trust me many times i am praying for it to go expensive so that i can earn some money

 

[Abu Zolfiqar]

the most tedious part was finding a price mechanism suitable to both. The Iranians took forever to conclude, but now it seems to be progressing. And its good indian decided to finally be upfront rather than keep flip flopping the way they were. China has expressed interest though logistically it would not be easy

 

[Hyde]

the most tedious part was finding a price mechanism suitable to both. The Iranians took forever to conclude, but now it seems to be progressing. And its good indian decided to finally be upfront rather than keep flip flopping the way they were. China has expressed interest though logistically it would not be easy

yes but also the fact is we will be importing the gas with almost 3 times higher price than what we get from Sue, Balochistan. We seriously need to utilize our coal reserves and possibly extract gas from it as said by Dr Samar Mubarakmand. We should try to less depending on fossil fuel and concentrate on hydro power projects and nuclear plant for electricity rather than importing expensive gas from Iran and generating electricity from it.

Just imagine if the prices for gas increases like 200% like Crude Oil in next 10 years? it will be very expensive to import gas from Iran in that sense. Better use this gas for other industrial use and avoid further gas loadshedding and generate electricity from hydro and nuclear plants and also a small percentage of our electricity should be generated by Wind and solar plants but should never rely on Fossil fuel for our energy needs

 

[Taha Samad]

yes but also the fact is we will be importing the gas with almost 3 times higher price than what we get from Sue, Balochistan. We seriously need to utilize our coal reserves and possibly extract gas from it as said by Dr Samar Mubarakmand. We should try to less depending on fossil fuel and concentrate on hydro power projects and nuclear plant for electricity rather than importing expensive gas from Iran and generating electricity from it.

Just imagine if the prices for gas increases like 200% like Crude Oil in next 10 years? it will be very expensive to import gas from Iran in that sense. Better use this gas for other industrial use and avoid further gas loadshedding and generate electricity from hydro and nuclear plants and also a small percentage of our electricity should be generated by Wind and solar plants but should never rely on Fossil fuel for our energy needs

agree with you.if you visit wapda website and read the bhasha dam report, there it is mentioned that for economic growth of pakistan 2/3 of pakistan's energy must be generated from cheap sources like hydro and nuclear but unfortunately presently only 1/3 is genereated from in-expensive sources and 2/3 is generated through thermal plants.

 

[pkd]

Iran and Pakistan Sign Pipeline Deal

ISLAMABAD—Iran and Pakistan signed a deal in Turkey on Tuesday paving the way for construction to start on a much-delayed natural-gas pipeline connecting the two nations in a move that has been opposed by Washington as undermining sanctions efforts against Tehran.

Pakistan has argued the pipeline, which will connect Iran's South Pars gas field with Pakistan's Baluchistan and Sindh provinces, is crucial to averting a growing energy crisis that is already causing severe electricity shortages.
"It's in our legitimate economic interests," said Abdul Basit, a foreign ministry spokesman. Construction on the pipeline should begin this year and be operational by 2014, he said.

Iran and Pakistan signed an initial pact in June last year and reached agreement on pricing in September. Under the terms of the final deal signed Tuesday, Iran will supply 750 million cubic feet a day of gas to Pakistan for 25 years.

The pipeline has been on the drawing board since the mid-1990s, when Iran and India signed a deal to transport gas through Pakistan. Dubbed the "Peace Pipeline" because of hopes it would lead to a détente between rivals India and Pakistan, the $7 billion, 2,700-kilometer pipeline project was stalled as the two nations almost went to war in 2001.

India dropped out last year amid continued security concerns in Pakistan's Baluchistan province, home to a militant Islamist separatist movement, and over disagreements between the parties on pricing.

The scaled-down project could still face further delays. Militants blew up another gas pipeline in Baluchistan in August, highlighting the difficulties Pakistan's government faces in operating in the poor but resource-rich province. Some details of the Iran-Pakistan pipeline also remain unclear, including how much it will cost and how the countries will finance the project given U.S. opposition.

The U.S. held out the promise of a civilian nuclear agreement with India, enacted in 2008, as a carrot to stop India from pursuing the pipeline, said Moeed Yusuf, a South Asia adviser to the United States Institute of Peace, a Washington-based think tank.

The U.S. Congress is unwilling to offer a similar deal to Pakistan, a nuclear power which is battling a domestic al Qaeda-linked Islamist insurgency, U.S. and Pakistani officials say. Washington had hoped to push another delayed pipeline linking Turkmenistan, Afghanistan, Pakistan and India as an alternative. But fighting in Afghanistan has kept that project on hold.

"Clearly the Americans are not happy about it. They don't want Iran getting this opening. But at this point they're not in a position to offer anything that will stop Pakistan," Mr. Yusuf said.

The U.S. imposes sanctions on any entity that invests more than $20 million per year in Iran's energy sector.

Pakistan relies on natural gas for about half of its energy needs, but domestic supplies are declining, forcing the country to import more. Poor infrastructure, including limited ability to handle liquefied natural gas imports make pipelined gas more attractive.

With gas shortages, the country's total power generating capacity is currently about 4,000 megawatts short of demand, causing rolling electricity blackouts and hurting businesses.

The Asian Development Bank is working with Pakistan on a report, set for release in June, on how to restructure Pakistan's energy sector to improve efficiency and stop common problems such as power theft.

Iran and Pakistan Sign Pipeline Deal - WSJ.com

 

[Hyde]

agree with you.if you visit wapda website and read the bhasha dam report, there it is mentioned that for economic growth of pakistan 2/3 of pakistan's energy must be generated from cheap sources like hydro and nuclear but unfortunately presently only 1/3 is genereated from in-expensive sources and 2/3 is generated through thermal plants.

overall its a great step and i am very happy but they should utilize this gas on industrial and home use rather than using 100% gas to generate electricity............. i know we are having Electricity loadshedding for 2-4 years its ok but in long term we need to start using our own resources for cheaper electricity and not imported Oil or Gas that triples the cost before generation

 

[Abu Zolfiqar]

well, it is common knowledge that the oil import bill is what killed our balance of payments

yes we are endowed by established and newly discovered gas reserves.....but we lack the infrastructure (investment) in these fields because foreign companies are hesistant to enter -- for understandable reasons.

This is why I always say that apart from leadership, law & order (lack thereof) is the one thing that is keeping our country from progressing/

We used to export electricity; now we are also importing it from Iran for parts of Baluchistan province.

These are all short-term solutions; every civilian elected administration has never thought things through in the long run. We are located strategically yet we dont take enough advantage of it.

Importing oil from Iran wont come cheap, but for now we have supply-demand gaps that need to also be met. Of course the costs will be incurred on the consumers.


imagine a scenario where there was zero corruption, and tax collection was properly enforced. We could be investing in our own infrastructure, rather than relying on foreign companies.

 

[Abu Zolfiqar]

we need to start using our own resources for cheaper electricity and not imported Oil or Gas that triples the cost before generation

one main reason behind load-shedding in the first place, compounded by the fact that there is total lack of synergy between power producing and gas companies

Pakistan needs to focus on re-newable energy. The Zorlu Windfarm initiative - albeit relatively small-scale -- is a step in right direction.

Pakistanis -- rather -- the leadership -- need to not be satisfied over short term solutions. IPP rentals and decreasing load shed times doesnt mean proble is over and done with.

Summer is around the corner; meaning impatience and anger will rise again as the power demands surge.


wind, solar, and other clean forms of energy must be put in place --on war footing basis. It would help narrow the supply-demand gap.


the rate of population growth in Pakistan sure as hell does not help.......lastly, examples need to be made out of businesses or private consumers who fail to pay their bills in their entirety, on time.

 

[Hyde]

one main reason behind load-shedding in the first place, compounded by the fact that there is total lack of synergy between power producing and gas companies

Agree

Pakistan needs to focus on re-newable energy. The Zorlu Windfarm initiative - albeit relatively small-scale -- is a step in right direction.

Pakistanis -- rather -- the leadership -- need to not be satisfied over short term solutions. IPP rentals and decreasing load shed times doesnt mean proble is over and done with.

But the problem with renewable energy is it is still very expensive minus hydropower energy. Even the devoloped countries have not able to utilize the renewable energy in large scale except Hydro projects. All Wind, Solar or geothermal power plants are relatively far more expensive than Hydro or Nuclear energy. We are a poor country we cannot rely on Wind or Solar energy at this stage. Sooner or later We will have to rely on Hydro projects to ensure cheaper electricity in our country.

Summer is around the corner; meaning impatience and anger will rise again as the power demands surge.

Agree

wind, solar, and other clean forms of energy must be put in place --on war footing basis. It would help narrow the supply-demand gap.


the rate of population growth in Pakistan sure as hell does not help.......lastly, examples need to be made out of businesses or private consumers who fail to pay their bills in their entirety, on time.

Actually wind or solar plants are not that big in size. You see the turkish company installed i guess 5 plants of 1 megawatt each and projected to install a total of 50MW of electricity by Wind energy. That does not fullfill even 1% of our electricity demands. We need bigger plants and only Hydro power projects such as Bungi Dam (6000MW - 7000MW) and Diamer Bhasha Dam (4500MW) or Nuclear plants of (300MW or 1000-1600MW designs) can only fullfil the requirements of our electricity. Solar or Wind plants are usually very small comparing to other energy alternatives and will not fullfil our requirements for now and their initial costs are also very high. If we go for Fossil fuel that is also very expensive (cheaper than Solar/Wind) but almost the double price comparing to Hydro projects and you never know if the Crude oil will stay around 75 dollars per barrel or might hike once again in coming years.

Time to stop relying on fossil energy and make Hydro and Nuclear plants in Pakistan for cheaper electricity

 

[jin]

Its good news but there seems no short term solution to overcome this 4000 MW deficit. It means we will have to depend on mosquito repellent for atleast 4 good years.