US threatens sanctions over Iran gas deal

[Devil Soul]

Clashing interests: US threatens sanctions over Iran gas deal
By Shahbaz Rana
Published: September 16, 2011
ISLAMABAD:
The United States has renewed its opposition to the multi-billion-dollar Iran-Pakistan gas pipeline, warning that Islamabad’s continuous pursuit of the plan may invoke US sanctions.
The issue was raised during the fourth round of Pak-US strategic dialogue on energy that concluded in Islamabad on Thursday without any major tangible gains.
Officials familiar with the development told The Express Tribune that the US Special Envoy for International Energy Affairs, Ambassador Carlos Pascual, ‘advised’ Islamabad to abandon its plan to import gas from Iran. He proposed instead that Pakistan pursue the TAPI project, a gas pipeline through Turkmenistan, Afghanistan, Pakistan and India.
Pakistan has reservations about the TAPI project due to security concerns about Afghanistan and unsettled issues relating to gas prices.
The South Pars gas field in Iran is the largest in the world, meaning that its production costs for Iran are significantly cheaper than those for gas extracted from smaller fields in Central Asia, including the Caspian Sea fields to which Turkmenistan has access.
(Read: Central Asia, making up for lost time)
A US embassy spokesperson confirmed that Washington is concerned with Pakistan’s current direction, and the issue was raised in Ambassador Pascual’s meetings. “The proposed Pakistan-Iran pipeline, if built, could raise concerns under the Iran Sanctions Act. We are encouraging Pakistan to seek alternatives”, read a terse response from the US embassy.
The renewed opposition from the US came just days after high level talks between Pakistan and Iran, where the two neighbours vowed to go ahead with the project that would bring its first gas flow by 2014.
Water and Power Minister Naveed Qamar, who co-chaired the meeting, denied to The Express Tribune that such a discussion took place.
However, another senior government official said that despite opposition from the US, Pakistan would not abandon the project, as an agreement has already been signed with Tehran.
The two-day strategic talks ended without any significant developments, despite initial high hopes. The US seems reluctant to provide significant investment in Pakistan’s financially crippled power sector.
A senior government official told The Express Tribune that the US special envoy has informed Pakistani authorities that it would be naïve to expect large support from Washington in the power sector until there is an institutional overhaul in the way the energy sector is regulated and managed.
He said that the US has urged Pakistan to introduce major reforms by scrapping redundant policies and implementing new regulations. The latest US stance highlights the urgency to reform the sector that has stalled economic growth. Despite special cabinet committees, the government has failed to carry out reforms over the past three years.
According to a US embassy handout, Ambassador Pascual reaffirmed the United States’ long-term commitment to working with Pakistan to establish a commercially viable and sustainable power sector. It further stated that, during the talks, Pakistan underscored its will to strengthen energy sector governance and efficiency, pursue regulatory reforms, improve financial management, and create a business climate that helps drive investment.
The US, welcoming these plans which were elaborated in the Integrated Energy Sector Report, maintained that these measures will help develop a stronger foundation for investment. Both sides agreed to continue technical exchanges in areas that can help improve power availability.
“As all Pakistanis know, reliable and affordable energy is critical to Pakistan’s prosperity,” said Ambassador Pascual. “Without it, businesses can’t operate and families can’t light and cool their homes. Pakistan’s future depends on power.”
The US also welcomed Pakistan’s continued engagement with international financial institutions and the private sector to assess the feasibility of viable hydropower projects, a reference to the $12 billion Diamer Bhasha dam, for which the Asian Development Bank has agreed to provide funding.
Published in The Express Tribune, September 16th, 2011.

 

[longbrained]

Let me explain what is at stake here:


This pipe line is no more about Iran. 50% of Pakistan's energy needs are met by natural gas from transportation to industry to household cooking. Not only that but natural gas is the only compound which is economically feasible to be chemically converted to artificial fertilizers, a very strategic commodity in an agricultural country like Pakistan. US already knows these facts. Pakistan's population is estimated to reach more than 200 million in 2015, and with natural gas having being used in Pakistan since 1950's, the remaining reserves in the country is not going to be enough to meet the needs. As time passes the energy crisis will only worsen if drastic steps are not taken. So far US has just been putting pressure on Pakistan without providing any relief whatsoever. The US proposed TAPI project is just a wet dream since it passes through Afghanistan, a country that has not seen peace since time of Alexander the great. TAPI is also going to be twice more expensive in terms of delivered gas than IP. Furthermore, Pak-Afghan relations have always been historically strained. Therefor the security of such a pipe line is a big question. The other US proposed helps are a few million dollars of help here and there, which is just a pittance and peanuts and not enough even to take care of energy needs of just a mid size town in Pakistan.

If US is serious in stopping Pakistan from going with this deal, it has to offer Pakistan something tangible just like India. US gave Indians 65 high tech nuclear reactors with guaranteed fuel. Pakistan has been offered nothing, despite the fact that Pakistan's energy problems are much more serious than India's. The energy crisis is so enormous that it already is affecting the economy, security and social fabric of nation. In five years time it is only going to get worse to the point that there will be an economic melt down with severe consequences for Pakistanis. This pipe line is not supposed to be a luxury rather it is a basic necessity of Pakistan. US has to offer Pakistan 65 nuclear reactors each 1000 MW with guaranteed fuel if they are serious about stopping this project. Otherwise, US opposition to this pipe line just proves one thing, ie. US is against Pakistan and its core interests wishing this nation to be finished. You see, Pakistan's per capita GDP is around 1000 dollars. US is about 40,000 dollars and Iran's about 5,500 dollars. It is evident that Pakistan is going to suffer the most in this game being more economically vulnerable. The total amount of gas going through this pipe line per year is going to be less than 1% of Iran's GDP. If this pipe line is never built, Iran will survive having lost just an export opportunity. If on the other hand Pakistan does not get this pipe line, the consequences are going to be dire. From this, it is easy to understand that, US is sacrificing one of its oldest ally just to minimally damage Iran's export earnings. As Henry Kissinger said, enmity with United States is dangerous but its friendship is always fatal. Very true indeed. Pakistan has been a US ally, having fought for US against US enemies whether during cold war or now. In return, Pakistan has received very little not enough even to compensate for Pakistan's own losses in those fights. As most Pakistanis say, people here are still waiting for the aircraft carrier that US promised to send to Pakistan's help in 1965 as India was getting huge support from Soviet Union. It is 2011, and it has not yet reached Pakistan as they say. Today, when Pakistan has serious issues in energy the most vital component of any modern economy, US not only is not helping but actively is stopping Pakistan from solving it too.

In another look at this problem, one has also to have a historical view. Pakistan was already under sanction during 1990's and it appears that during that time, Pakistan had one of its strongest image around the world. The life was hard but it was certainly hopeful and honorable. Security was above world's average standard. During sanctions Pakistan developed its missile technologies and became a nuclear state, both the jewels of Pakistanis pride today. It appears Pakistan actually benefited from those sanctions. The other case being Iran itself. Having been under sanctions for 32 years now, they have only progressed. Their image is solid and security good. Besides they do not have to answer to anybody when making decisions. So these threats of sanctions are actually music to the ears of Pakistanis. Without sanctions Pakistan receives nothing but has to obey every order. With sanctions, Pakistan is going to be free and will depend on itself to build the nation. As is now clear, this pipe line game is not against Iran. It is actually against Pakistan and its existence.

 

[lem34]

Bully boys eventually become unstuck.

 

[longbrained]

One funny objections had heard about IP on some American news channel, was that this pipe line does not have security and is going to be blown up. One wonders if it is a threat too or a sincere analysis. The reality on the ground is that IP is going to pass through the same areas and province from which currently Pakistan's gas supply comes from through pipe lines. Furthermore Pakistan has tens of thousands of kilometers of pipe lines and never there has been a major halt in Pakistan's energy supply due to explosions. Besides, Pakistan army is fully capable of securing this pipe line which is to be built underground throughout its course as part of original design. Just having a few military outposts with armor patrol and CCTV cameras will do the job. Or maybe as in the case of Iran, this is what they really meant:
US ex-official threatens to blow up things in Iran - YouTube

 

[longbrained]

Bully boys eventually become unstuck.

Hopefully, in this process they will not unstuck us too.

 

[lem34]

Hopefully, in this process they will not unstuck us too.

they have done all they can to pakistan just look at the anti propaganda constantly coming out of america. How many times can they punish us for not being a pliant state. They cant get exactly what they want even with our corrupt leaders.

 

[muse]

One funny objections had heard about IP on some American news channel, was that this pipe line does not have security and is going to be blown up. One wonders if it is a threat too or a sincere analysis

I quess if "Ishara" is not enough then some practical expression of "concern" will have to suffice

 

[very]

So what more favor we can expect from our US bosses.....

 

[Cheetah786]

So these threats of sanctions are actually music to the ears of Pakistanis

This is 100% true and i couldn't agree more Pakistan should do whats best for her .

 

[longbrained]

I quess if "Ishara" is not enough then some practical expression of "concern" will have to suffice

That is the irony. They talk about menace of terrorism and look what they are doing.

 

[kawaraj]

Great analysis.

The answer is simple. Fvck off, americans.

Basing on our relationship with the US through a half century, we sincerely conclude this.

Let me explain what is at stake here:


This pipe line is no more about Iran. 50% of Pakistan's energy needs are met by natural gas from transportation to industry to household cooking. Not only that but natural gas is the only compound which is economically feasible to be chemically converted to artificial fertilizers, a very strategic commodity in an agricultural country like Pakistan. US already knows these facts. Pakistan's population is estimated to reach more than 200 million in 2015, and with natural gas having being used in Pakistan since 1950's, the remaining reserves in the country is not going to be enough to meet the needs. As time passes the energy crisis will only worsen if drastic steps are not taken. So far US has just been putting pressure on Pakistan without providing any relief whatsoever. The US proposed TAPI project is just a wet dream since it passes through Afghanistan, a country that has not seen peace since time of Alexander the great. TAPI is also going to be twice more expensive in terms of delivered gas than IP. Furthermore, Pak-Afghan relations have always been historically strained. Therefor the security of such a pipe line is a big question. The other US proposed helps are a few million dollars of help here and there, which is just a pittance and peanuts and not enough even to take care of energy needs of just a mid size town in Pakistan.

If US is serious in stopping Pakistan from going with this deal, it has to offer Pakistan something tangible just like India. US gave Indians 65 high tech nuclear reactors with guaranteed fuel. Pakistan has been offered nothing, despite the fact that Pakistan's energy problems are much more serious than India's. The energy crisis is so enormous that it already is affecting the economy, security and social fabric of nation. In five years time it is only going to get worse to the point that there will be an economic melt down with severe consequences for Pakistanis. This pipe line is not supposed to be a luxury rather it is a basic necessity of Pakistan. US has to offer Pakistan 65 nuclear reactors each 1000 MW with guaranteed fuel if they are serious about stopping this project. Otherwise, US opposition to this pipe line just proves one thing, ie. US is against Pakistan and its core interests wishing this nation to be finished. You see, Pakistan's per capita GDP is around 1000 dollars. US is about 40,000 dollars and Iran's about 5,500 dollars. It is evident that Pakistan is going to suffer the most in this game being more economically vulnerable. The total amount of gas going through this pipe line per year is going to be less than 1% of Iran's GDP. If this pipe line is never built, Iran will survive having lost just an export opportunity. If on the other hand Pakistan does not get this pipe line, the consequences are going to be dire. From this, it is easy to understand that, US is sacrificing one its oldest ally just to minimally damage Iran's export earnings. As Henry Kissinger said, enmity with United States is dangerous but its friendship is always fatal. Very true indeed. Pakistan has been a US ally, having fought for US against US enemies whether during cold war or now. In return, Pakistan has received very little not enough even to compensate for Pakistan's own losses in those fights. As most Pakistanis say, people here are still waiting for the aircraft carrier that US promised to send to Pakistan's help in 1965 as India was getting huge support from Soviet Union. It is 2011, and it has not yet reached Pakistan as they say. Today, when Pakistan has serious issues in energy the most vital component of any modern economy, US not only is not helping but actively is stopping Pakistan from solving it too.

In another look at this problem, one has also to have a historical view. Pakistan was already under sanction during 1990's and it appears that during that time, Pakistan had one of its strongest image around the world. The life was hard but it was certainly hopeful and honorable. Security was above world's average standard. During sanctions Pakistan developed its missile technologies and became a nuclear state, both the jewels of Pakistanis pride today. It appears Pakistan actually benefited from those sanctions. The other case being Iran itself. Having been under sanctions for 32 years now, they have only progressed. Their image is solid and security good. Besides they do not have to answer to anybody when making decisions. So these threats of sanctions are actually music to the ears of Pakistanis. Without sanctions Pakistan receives nothing but has to obey every order. With sanctions, Pakistan is going to be free and will depend on itself to build the nation. As is now clear, this pipe line game is not against Iran. It is actually against Pakistan and its existence.

 

[kawaraj]

Great analysis.

The answer is simple. Fvck off, americans.

Basing on our relationship with the US through a half century, we sincerely conclude this.

Let me explain what is at stake here:


This pipe line is no more about Iran. 50% of Pakistan's energy needs are met by natural gas from transportation to industry to household cooking. Not only that but natural gas is the only compound which is economically feasible to be chemically converted to artificial fertilizers, a very strategic commodity in an agricultural country like Pakistan. US already knows these facts. Pakistan's population is estimated to reach more than 200 million in 2015, and with natural gas having being used in Pakistan since 1950's, the remaining reserves in the country is not going to be enough to meet the needs. As time passes the energy crisis will only worsen if drastic steps are not taken. So far US has just been putting pressure on Pakistan without providing any relief whatsoever. The US proposed TAPI project is just a wet dream since it passes through Afghanistan, a country that has not seen peace since time of Alexander the great. TAPI is also going to be twice more expensive in terms of delivered gas than IP. Furthermore, Pak-Afghan relations have always been historically strained. Therefor the security of such a pipe line is a big question. The other US proposed helps are a few million dollars of help here and there, which is just a pittance and peanuts and not enough even to take care of energy needs of just a mid size town in Pakistan.

If US is serious in stopping Pakistan from going with this deal, it has to offer Pakistan something tangible just like India. US gave Indians 65 high tech nuclear reactors with guaranteed fuel. Pakistan has been offered nothing, despite the fact that Pakistan's energy problems are much more serious than India's. The energy crisis is so enormous that it already is affecting the economy, security and social fabric of nation. In five years time it is only going to get worse to the point that there will be an economic melt down with severe consequences for Pakistanis. This pipe line is not supposed to be a luxury rather it is a basic necessity of Pakistan. US has to offer Pakistan 65 nuclear reactors each 1000 MW with guaranteed fuel if they are serious about stopping this project. Otherwise, US opposition to this pipe line just proves one thing, ie. US is against Pakistan and its core interests wishing this nation to be finished. You see, Pakistan's per capita GDP is around 1000 dollars. US is about 40,000 dollars and Iran's about 5,500 dollars. It is evident that Pakistan is going to suffer the most in this game being more economically vulnerable. The total amount of gas going through this pipe line per year is going to be less than 1% of Iran's GDP. If this pipe line is never built, Iran will survive having lost just an export opportunity. If on the other hand Pakistan does not get this pipe line, the consequences are going to be dire. From this, it is easy to understand that, US is sacrificing one its oldest ally just to minimally damage Iran's export earnings. As Henry Kissinger said, enmity with United States is dangerous but its friendship is always fatal. Very true indeed. Pakistan has been a US ally, having fought for US against US enemies whether during cold war or now. In return, Pakistan has received very little not enough even to compensate for Pakistan's own losses in those fights. As most Pakistanis say, people here are still waiting for the aircraft carrier that US promised to send to Pakistan's help in 1965 as India was getting huge support from Soviet Union. It is 2011, and it has not yet reached Pakistan as they say. Today, when Pakistan has serious issues in energy the most vital component of any modern economy, US not only is not helping but actively is stopping Pakistan from solving it too.

In another look at this problem, one has also to have a historical view. Pakistan was already under sanction during 1990's and it appears that during that time, Pakistan had one of its strongest image around the world. The life was hard but it was certainly hopeful and honorable. Security was above world's average standard. During sanctions Pakistan developed its missile technologies and became a nuclear state, both the jewels of Pakistanis pride today. It appears Pakistan actually benefited from those sanctions. The other case being Iran itself. Having been under sanctions for 32 years now, they have only progressed. Their image is solid and security good. Besides they do not have to answer to anybody when making decisions. So these threats of sanctions are actually music to the ears of Pakistanis. Without sanctions Pakistan receives nothing but has to obey every order. With sanctions, Pakistan is going to be free and will depend on itself to build the nation. As is now clear, this pipe line game is not against Iran. It is actually against Pakistan and its existence.

 

[very]

If US don't care for us ,simply just don't care for them.

 

[SpArK]

The deal will be called off soon.It seems.

 

[Abu Zolfiqar]

this is a tough position, which will require delicate diplomacy. On one hand, as a member-state of the UN --there are certain obligations which we are compelled to adhere to.

on the other hand, the I-P pipeline has been discussed; price mechanism --after painful hours of negotiation, has been reached.....there have been scores of meetings and MoUs signed. It would be criminal to let that all go to waste, at least until Pakistan security situation improves and we are able to untap the 6 trillion cubic meters of natural gas we have in our own country.


in other words, Pakistan should remain firm. The deal should prevail. If the sanctions become even more inexorable, it will put us in a tricky position. Most likely the first thing they will do is cut funding for the dam. But in my opinion, that is okay. We have certain shortages --especially in the winter. A true self-respecting country (and leadership) is that which looks after its people first.

it isnt just the US; but its also the Saudis -- who are not happy about Pakistani cooperation with Iran. But ok fine, that's alright no big deal.