Pak-Iran gas project

[TOPGUN]

The US needs to help us out after all we are fighting there war for them hence, now our war .. Second the deal with Iran is awsome news Pakistan is moving ahead with take caring of its self first now which should have been doing before anyhow never late then ever over all good move Pakistan.

 

[AZADPAKISTAN2009]

Same bull crap , we have energy needs we can be developed country in 4-6 years if we have enough electricity

 

[AZADPAKISTAN2009]

India is drama bazi this pipeline will go to china now .... and India can consider being part of other pipeline form turkamanistan

 

[RiazHaq]

Days after Iran and Pakistan signed pacts to implement a long-delayed gas pipeline, India today said it has proposed trilateral talks in May to address concerns that have been impeding its joining the project.

"We have genuine issues that need to be addressed before we sign up for the (Iran-Pakistan-India) pipeline. We have proposed dates in May for technical level talks in Tehran to iron these out," oil secretary S Sundareshan told PTI here.

New Delhi has been boycotting project talks since 2008 after its concerns of safe delivery of gas were ignored. It wants Iran to be responsible for safe passage of gas through 1,035-km pipeline length in Pakistan and would pay for the fuel only when it is delivered at Pakistan-India border.

Iran on the other hand has suggested a trilateral mechanism, meaning contractual provisions between three countries, to ensure safe delivery of gas to India. Under this system, New Delhi pays for its share of gas even if the supplies were to be disrupted in Pakistan, officials said.

"... As far as India is concerned, we are in consultation with the government of Iran. We have certain concerns. Concerns about pricing, concerns about security, which have been taken up with the government of Iran," external affairs minister S M Krishna said here.

According to Iran's official news agency IRNA, Tehran and Islamabad on Tuesday signed Operational Agreement and the
Heads of Agreement in Turkey though it was not clear how these
were different from the one that was inked during President
Asif Ali Zardari's visit to Tehran in May 2009.

It was stated last year that the two sides would next sign Gas Sales and Purchase Agreement--- a pact that allows gas sale at agreed terms and without which no transaction can take place. It was not clear if this was one of the agreements that Inter-State Gas Systems, a semi-autonomous Pakistani company and National Iranian Oil Co (NIOC) signed on Tuesday.

Officials said Tehran has been insisting that ownership of gas would be transfered at Iran-Pakistan border while New Delhi wants it to be Pakistan-India border thereby making Iran explicitly responsible for safe delivery of gas.

India wants in-built safeguards in the contract to ensure safe delivery of gas at India-Pakistan border.

While the 1,100-km pipeline from South Pars gas fields inthe Persian Gulf to Iran-Pakistan border would be laid by an Iranian firm, New Delhi wants to take stake in the 1,035-km pipeline section in Pakistan.

India feels that its participation in execution of pipeline in Pakistan would make the project more bankable, reduce the financing cost, ensure timely execution and ensure transparent and efficient management of the operations, they said, adding Islamabad has so far not agreed to the proposal.

Under the terms of 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,hen Iran and India inked preliminary agreements to
transport gas through Pakistan. It was dubbed the "Peace
Pipeline" because of hopes it would lead to a detente between
neighbours India and Pakistan.

India says it fears for safety of the pipeline in Pakistan's Baluchistan province, home to a militant Islamist separatist movement.

Officials said New Delhi is also upset with Iran's frequent changes in gas price.

Iran had originally priced its gas at USD 3.2 per mBtu but later in 2007 revised the rates to USD 4.93 per mBtu at USD 60 a barrel crude oil prices, which was accepted by India. Last year, it again revised it and according to the new pricing formula, the fuel will cost New Delhi USD 8.3 at USD 60 per barrel oil price at Iran-Pakistan border.

Added to this would be a minimum of USD 1.1-1.2 per mBtu towards transportation cost and transit fee that India would
have to pay for wheeling the gas through Pakistan, they said.

Gas from the Panna/Mukta and Tapti fields in Mumbai offshore fetches the maximum USD 5.70 per mBtu, while Reliance Industries' Krishna Godavari basin gas has been priced at USD
4.20 per mBtu if crude oil price was USD 60 or more.

Officials said Iran was not willing to commit to a supply-or-pay regime wherein it would have been held accountable for non-delivery of gas at Indian border. It, however, wants New Delhi to commit to a strict take-or-pay clause wherein India would have to pay even if it does not take deliveries.

All it now says is that if Pakistan were to disrupt supplies to India, Iran will make a proportionate cut in the quantities to be delivered to Islamabad.

India proposes trilateral talks on Iran-Pakistan-India gas pipeline - dnaindia.com

 

[Peregrine]

hi,
Pakistan should go with this Iran gas pipeline deal no matter what, if India is not willing then China can step in its not a big issue, however the only concern is Mr10 % and Rehman Malik

 

[ajpirzada]

there was a news that india's external affairs ministry has suggested to build another pipeline via sea and thus avoiding pakistan.
not sure how feasible will that be or will iran be interested in building two pipelines for supplying gas to one region.

 

[RiazHaq]

The BBC is reporting that Pak govt is seeking supreme court approval to pursue Dr. AQ Khan over his alleged interview with Washington Post regarding proliferation to Iran and Iraq. It comes days before discussions in Washington for a possible civilian nuke deal with US:

<i>Pakistan's government has filed a court application to investigate disgraced nuclear scientist Abdul Qadeer Khan.

Officials cited an interview allegedly given by Dr Khan to the Washington Post newspaper, which says he was involved in proliferation to Iran and Iraq.

Dr Khan has denied giving any such interview to the media.

The application from Pakistan's government comes ahead of talks in Washington on a possible civilian nuclear deal with the United States.

"We want to question Dr Khan about this interview, which has revealed sensitive information about Pakistan's nuclear programme," the government said in its application to the high court in Lahore.

The court had been hearing a petition filed by Dr Khan who accuses the government of restricting his movement, despite a court order last August freeing him from house arrest.

He was detained in 2004, following a televised confession that he had been involved in international nuclear proliferation.

The BBC's Syed Shoaib Hasan says Pakistan's government has been keeping close tabs on the former head of the country's nuclear programme since his release.

"We want to learn who is passing on such information to foreign newspapers," the government's application to the court said on Monday.

"Such information has a direct bearing on the security of Pakistan's nuclear programme."

The interviews that have upset the government were published on 10 and 14 March in the Washington Post.

Dr Khan has denied giving them. Speaking on Monday to local newspapers and TV channels in Pakistan, he said the information had been fabricated.

The petition happened to be filed as Pakistan's military chief and foreign minister landed in the United States.

They are to begin talks with US officials on 24 March on a possible civilian nuclear deal between the two countries.

BBC News - Pakistan seeks court backing to probe scientist AQ Khan

 

[DaRk WaVe]

Phada Phada

US wants to Torpedo This gas pipeline

 

[H2O3C4Nitrogen]

Its very good decision to buy gas from Iran , Depending upon the history of our relations with the US we cant shut down the doors of cooperations with our neighboring countries . If the US wants Pakistan to pull out of IP gas pipeline deal then it would have to do something extraordinary , like the civilian nuclear tech like that of India and more access to Pakistani goods to its markets . Again the process of trust building is slow and will take time, one simply cannot expect miracles out of it , if someone does then he/she is terribly wrong .

In the end our better ties with regional countries would payoff more than our longing desire to have better ties with a superpower thousands of miles away ,not to mention the cost of building those ties.

 

[Haseebullah]

If we want to become successful than we have to keep good relations with all our neighbors(INDAI is an exception).This deal will surely promote Pak-Iran relations.We dont need to give a crap about what US thinks.It will always be against Iran because this money could be used for the funding of Iran Nuclear program.

 

[Cyrus the Great]

In clear defiance of the US campaign to isolate Iran, Pakistan this week formally signed an agreement for the construction of a 560-mile, $7.5 billion gas pipeline from Iran's South Pars gas field in the Gulf through Pakistan's Balochistan province to Sindh province. The agreement with Iran came within days of America's announcement of plans to push stricter sanctions against Iran, and just days before the start of the planned US-Pakistan strategic dialog in Washington.

"By connecting itself with the world's second largest gas reserves, Pakistan would guarantee reliable supply for decades to come," U.S. energy analyst Gal Luft told UPI.

Pakistan is not alone in snubbing the world's sole superpower. Just last week, the Israelis did the same when they announced plans to build 1600 new units in occupied East Jerusalem during Vice President Joseph Biden's visit there. Subsequent denunciations of Israeli actions by the Quartet (UN, Europe, Russia and US) and angry rhetoric in Washington has only served to strengthen the Jewish state's resolve to go ahead with the settlement construction on Palestinian land.

Turkey, Brazil and China have in the past month each delivered timely snubs of Washington's push for sanctions against the Iranian regime, according to a story in the Wall Street Journal. Russia joined the list of snubbers when it surprised the U.S. delegation this week by announcing that it plans to help Iran launch its first nuclear reactor by July just as Secretary of State Hillary Clinton wrapped up her Moscow visit.

Strangely enough, a country like India which prides itself on its independence in setting foreign policy, is out of tune with the rest of the world in its decision to pull out of the Iran-Pakistan-India gap pipeline project under intense US pressure. It seems India is quite satisfied with the access to US nuclear technology in exchange for obeying Washington on Iran.

The United States no longer enjoys the kind of unchallenged superpower status it did immediately after the collapse of the Soviet Union. In spite of the fact that the US economy is still the world's largest accounting for 27% of global GDP, and its military is the most powerful with the ability to project American power around the globe, there are increasing challenges to its authority by many nations. In fact, the current US situation is best explained by its parallels to that faced by the Vito Corleone character in the classic movie "The Godfather", as described by "The Godfather Doctrine", a foreign policy parable by John Hulsman and Wes Mitchell.

It seems that the elaborate framework of international institutions that US helped architect and build after WW II, such as UN Security Council, NATO, World Bank, OECD, WTO, IMF, and IAEA, through which America exercises tremendous power and control, are being weakened partly due to America's own missteps, and my guess is that these alliances and institutions will not survive beyond the next few decades. There will be a huge realignment of nations, as the powerful new players, including China, Russia, Germany, Japan, Brazil, India, South Africa will demand greater say in the affairs of the world. So will the Iranians, the Koreans, the Turks, the Pakistanis and the Arabs. With their growing economic power, the Chinese are already starting to take steps to replace the US dollar with the Chinese yuan as a major reserve and trade currency in the world.

The US-India nuclear deal, and India's decision to abandon the IPI gas pipeline, and the growing India-US ties appear to be part of a larger realignment in Asia and the world. There is an effort by the US to "co-opt" India as a close ally in the emerging new world order.

Haq's Musings: Israel, Pakistan and Russia Defy Washington

Haq's Musings: The Godfather's Vito Corleone: A Metaphor for Uncle Sam Today?

there is not any place called "Gulf region" South Pars" is in Persian Gulf", please use a correct name for that.
can I call Pakistan as par of India if so, then you can use Gulf for " Persian Gulf".
if you dont respect others properties can you expect respect from others?

 

[EagleEyes]

Pak-Iran gas project
Shanzeh Iqbal

The Pak-Iran gas pipeline project was signed by the Petroleum Secretaries of both countries in the historical city of Istanbul. According to the agreement, Iran will provide 750 million cubic feet gas to Pakistan daily and Pakistan will be able to get gas till 2 years according to this agreement. This gas will be pumped daily from Iran and 1000 mega watt electricity can be generated because of this. This project will be completed by 2014. Iranian gas will come through Balochistan.

Physical survey will complete within a year and Inter Estate Company will lay the pipeline from Paris gas field to Nawab Shah. The agreement will be valid till 25 years and the cost involved amounts to seven billion dollars. Iran has the world’s largest gas resources after Russia .However there were certain obstacles like sanctions by the West, political agitation and construction delays which slowed its development as an exporter Large gas reserves were discovered in Iran in 1988. This motivated the Iranian Government to export natural gas and earn foreign exchange. The dearth of energy in the neighboring Pakistan and India promised good markets for this venture. In 1995, Pakistan and Iran signed a preliminary agreement for a natural gas pipeline. Later Iran proposed this pipeline to extend to India. Because of this gas pipeline Pakistan would have a huge annual income as transit fees.

Many other resources of energy were available like domestic coal and hydropower. The question arose why both countries opted for natural gas. The proper justification can be the fact that there were large resources of natural gas in the immediate neighboring countries. The fact remains that natural gas is a clean and cheap source of energy. Therefore as compared to other alternatives it is a preferred source. At the end of 1999, General Pervez Musharraf visited Iran and discussions were held on the pipeline project. In 2000 Iran expressed keen desire to complete the project speedily. It also gave Pakistan the incentive of additional transit fees in case pipeline was completed within three years. The project was planned since the 1990s and originally it was extended from Pakistan to its old rival India .But India was hesitant not to join this pact because of certain reasons. There was a distant factor regarding Pakistan. Then there were security concerns regarding gas interruptions in case of any conflict with Pakistan. Iran agreed that in case Pakistan cuts supply to India, Iran will immediately cut off gas supplies to Pakistan and Iran will supply an equal amount of Liquefied natural gas (LNG) to India at the same price. Another reason can be the fact that our rival India does not want that Pakistan should get a regular source of income in the shape of transit fees, (app $500-700 a year) for gas to be transported through its territory. India did not participate in talks since 2008. Thus he showed a negative response and the project delayed. This was detrimental to Iran and Pakistan. Still other reason might be the American pressure on India for not joining this project. Successful implementation of this project will not only increase the credibility of Pakistan’s government but also entail positive gains for us with reference to mutual economic independence. 900 kilometer pipeline is expected to meet the energy crisis in Pakistan that is going to mar the development of Pakistan. Cheap and reliable energy resource in the garb of this gas pipeline will meet the growing energy demands of both Iran and Pakistan. The gas pipeline will build up the mutual trust between the two countries. This may change the nature of regional politics in South Asia. Politico-social discourse between Iran and Pakistan will be transferred through these CBMs and economic collaborations. Meager economy will improve and modernize in this way Pakistan badly needs gas and electricity .Our industries are terribly suffering because of this reason. Pakistan did not bow down to American pressure. America had strict pressure on Iranian gas pipeline.

Because of low gas supply for domestic and commercial uses there were huge economic crisis, political turmoil and it also cast a slur on the popularity of democratic government. The power generation is affected. There is a prominent low production. The quality of work is marred. All these factors in turn lead to inflation and the resultant failure in competing in the global world. Industrialization, rapidly rising urban population, hyper info-transmission age, increased energy demands and associated with them was the greater ratio of both the country’s population to primary energy net. Indeed the decision on this agreement was direly needed. Although Pakistan has large reservoirs of natural gas, yet the widening gap between energy demand and supply went on growing. This gap could be bridged only by import of natural gas through pipelineLikewise Pakistan used to import oil for meeting its energy needs. Import bill amounted to almost 3 billion dollars in the fiscal year 2004. Such type of spending will be drastically minimized through import of cheap natural gas. This measure will also attract FDI (foreign direct investment). The healthy environment for investment will be provided in this way by the government .The positive image of Pakistan will be uplifted abroad. The confidence of international community will enhance. These types of agreements will have inherent tendency to pave way for regional reform. Bilateral relations between two countries will also invite co-operation on other key issues and will definitely exercise a positive influence. Pakistan’s geo-strategic location is above board and it is a geographical compulsion for any pipeline from the West to pass through the Pakistani territory on land off shore. There will be cheaper gas for domestic needs. The additional gas will be available to each country for future needs without taxing the domestic reservoirs. There are very fair chances of improved trade and economic relations with Iran. Critics fear that there can be a risk of sabotaging the pipeline by nefarious elements, may it be individuals or groups, especially in the explosive Balochistan. This risk can be overcome or at least reduced by patrolling and remote monitoring. Some power plants using the natural gas should supply electricity to both Iran and Pakistan. The location of these power plants must be demarcated in such a precise way to ensure its provision. The ways must be devised to ensure the constant supply without any disruption.

The spade work for Turkmenistan Afghanistan-Pakistan gas pipeline must be continued by Pakistan. This will provide our country a direct access to Central Asian Republics trade provided the peace in Afghanistan prevails. We also need to be vigilant regarding India .It can create bad blood between Iran and Pakistan to hinder this project Now the need of the hour is the successful implementation without any interruption. Even if the Government changes the projects in the national interest should continue with a consistent policy. But the fact remains that Pak-Iran gas project is in the great interest of our economy. This also bears witness to our transparent foreign policy.
Pak-Iran gas project

 

[Hyde]

1000 MW of electricity?

The writer is

thats 4000MW can be generated from this Gas

 

[dbc]

WebMaster, why create a new thread for this , there are several threads that discuss this project?

Anyone have pricing terms for this? Since you are likely dealing with Gazzzprom as the investor and contractor you best check the fine print.

 

[Gin ka Pakistan]

Electricity from Iran will be cheaper then IPPs and rented IPPs but it will be costly in a sense that US won't like it.