Why Iran-Pakistan Gas Pipeline is Important

[AGENT-47]

Pakistan's gas fields are only expected to last for about another 20 years at the most due to heavy industrial usage.
To meet the future energy demands, Pakistan is currently looking at two projects:

1. TAPI Pipeline
2. Iran-Pakistan Pipeline

​

First, a brief review (for those who are not interested, skip to the end)

Turkmenistan–Afghanistan–Pakistan–India Pipeline (TAPI)

• The pipeline will transport natural gas from the Galkynysh Gas Field (2nd largest in the world) in Turkmenistan through Afghanistan into Pakistan and then to India.
• Construction on the project started in Turkmenistan in December 2015.
• The pipeline is expected to be operational by 2019.
• The project has drawn strong US support (in contrast to Iran-Pakistan pipeline)
• The Taliban have vowed to cooperate and not disrupt the project in areas they control.

Technical details:

• capacity = 33 billion cubic metres per year (5 billion Afghanistan and 14 billion to each Pakistan and India.)
• estimated cost = $10 billion

Iran–Pakistan gas pipeline

• originally, the pipeline was intended to supply gas from South Pars gas field located in the Persian Gulf to Pakistan.

• India later agreed to be the part of the project, but eventually withdrew.
• On 4 September 2012, the project was announced to commence before October 2012 and be completed by December 2014.
• However, the project could not be completed for various reasons:

1)"External pressure"

• international sanctions against Iran meant sanctions for Pakistan if it continued with the pipeline.
• In January 2010, the United States asked Pakistan to abandon the pipeline project. If cancelling the project, Pakistan would receive assistance from the United States for construction of a liquefied natural gas terminal and importing electricity from Tajikistan through Afghanistan. On 29 January 2013, US consul general Michael Dodman threatened Pakistan with economic sanctions if it does not abandon the project.
• On 15 April 2012, it was reported through unnamed diplomatic sources in Islamabad that Saudia Arabia was offering to deliver an "alternative package" to Pakistan if the country abandoned its cooperation with Iran. In addition to oil the package would also include a cash loan and oil facility.

2)"Pricing Issues"

• In late October 2013, Sustainable Policy Development Institute published a report in which the proposed pipeline was termed as "death sentence" for Pakistan. Since the prices in the contract are linked to crude oil prices, the government "blatantly ignored the energy dynamics and its pricing while going for this deal". The gas sold to Pakistan will be higher priced than the current domestic prices of gas in the country.

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 tables.

Row With Iran

• In 2010 Iran and Pakistan signed an agreement on the pipeline. According to the agreement, each country must complete its section by 2014.

• In 2011, Iran announced that it had completed construction of its section

• If Pakistan failed to fulfill its obligation to complete the pipeline on its side by the end of 2014, it would have to pay a daily penalty of $1 million to Iran until completion.

• In February 2018, Iranian oil minister threatened to take legal action against Pakistan in the International Court Of Justice if Pakistan fails to develop the gas pipeline.

Technical Details

• Max. capacity = 40 billion cubic metres (with India out, however, the pipeline will carry only 8.7 billion cubic metres to meet Pakistan's needs initially)
• diameter = 56 inches
• expected constructioin cost = US$7.5 billion

WHY IRAN-PAKISTAN PIPELINE SHOULD NOT BE IGNORED:

1. Country upstream in the supply chain can choke the one downstream of the project

• For example, Pakistan could slow/stop the gas supply to India in times of tension (although, with multiple countries involved and economic reasons this is unlikely, but still, a remote possibility, for instance, https://www.independent.co.uk/news/...f-russia-cuts-the-gas-to-europe-10074294.html )

• Afghanistan could do the same to Pakistan or India could use Afghanistan to threaten Pakistan with cutting off the gas (recently Afghanistan threatened Pakistan’s access to Central Asian countries… https://tribune.com.pk/story/1180690/alternative-exists-pakistan-little-need-worry-kabuls-threat/ )

Therefore it is imperative that Pakistan had an alternate gas supplier like Iran…
With the deteriorating India-Iran relations, this can be extremely beneficial in the future

2. After completion of TAPI, gas prices could undergo renegotiation repeatedly over the years

• Having an alternative would ensure lack of dependence on one supplier

3. Iranian gas is likely to be cheaper than TAPI.

Despite the 2013 Sustainable Policy Development Institute report Iranian gas is likely to be cheaper than its competition, according to some sources.

• the estimated cost of gas delivered from Iran = US$11 per million British thermal unit (MMBTU)
• TAPI gas cost = $13 per MMBTU
• imported LNG = $18 per MMBTU

India's Direct Undersea Pipeline

• Since the year 2017, India has been planning to disassociate from this Iran-Pak pipeline, and working on a cheaper independent undersea pipeline directly from Iran.
• However, with the escalating tensions between Tehan and New-Dehli, thanks to added US pressure, this project is not likely to come to fruition anytime soon.
• Also, after TAPI, India has already shown its willingness to use Pakistan's land for gas supply.

 

[FalconStar]

PTI government has announced they won't be pursuing the Iran Pakistan gas pipeline cause of the sanctions and they have already talked it out with Iran and they assured them they won't be taking the case to the International Court as they were thinking of doing before.

 

[AGENT-47]

PTI government has announced they won't be pursuing the Iran Pakistan gas pipeline cause of the sanctions and they have already talked it out with Iran and they assured them they won't be taking the case to the International Court as they were thinking of doing before.

Yes, it's unfortunate. But looking at the current economic situation, it not surprising...

 

[AZADPAKISTAN2009]

Where we buy our gas services is no body else's business

 

[Turingsage]

Therefore it is imperative that Pakistan had an alternate gas supplier like Iran…
With the deteriorating India-Iran relations

However, with the escalating tensions between Tehan and New-Dehli, thanks to added US pressure, this project is not likely to come to fruition anytime soon.

India is worlds second largest importer of oil and gas from Iran.

https://oilprice.com/Energy/Crude-Oil/Who-Was-Buying-Iranian-Oil-And-What-Happens-Next.html
These are May end figures from this year

SUNDAY
August, 26 2018

India Crude Imports From Iran Increase 48 Percent

1. Energy

Wednesday, August 01, 2018
India Crude Imports From Iran Increase 48 Percent

India’s Ministry of Petroleum has announced that crude imports from Iran witnessed a massive jump this June in comparison to last year, disproving reports published by global research agencies that India had heavily cut down crude purchases from Iran due to American sanctions.

Indian refineries imported 48% more Iranian crude in June this year as compared to imports from June 2017, according to government estimates, Sputnik reported.

"Indian refineries imported 1.9 million tons of crude oil from Iran in June 2017 and placed an order for 2.82 million tons in June 2018," India's Oil Minister Dharmendra Pradhan said in parliament on Monday.

However, the minister did not provide the amount of oil shipped from Iran during the current month. Presenting monthly details, Pradhan informed parliament that Iranian crude imports had witnessed an 11.8% increase in March, 16.5% in April and 16% in May in comparison to the corresponding months of last year.

Iran's President Hassan Rouhani visited New Delhi in February this year and during his trip India promised to increase crude oil imports from Iran from 205,000 barrels per day in 2017-18 to 396,000 barrels per day in 2018-19.

Earlier, citing data from industry and shipping sources, Reuters had reported that India's monthly oil imports from Iran had declined 16% in June this year as compared to May.

The Indian Oil Ministry has revealed that India and China have discussed the possibility of forming an "oil buyers' club" that can negotiate better terms with sellers.

"Meetings have been held between India and China, both at ministerial and company levels. During these meetings, both sides expressed interest in cooperating to deal with high crude oil and gas prices, including through increased communication between companies to work towards control and reduce spikes in prices," Minister Pradhan stated in parliament.

Despite several requests and threats from the US administration to cut trade ties with Iran, the Indian government has insisted that its trade decision would be guided by the country's interest and won't be compromised for any third country."
https://financialtribune.com/articles/energy/90889/india-crude-imports-from-iran-increase-48-percent


This is from August of this year from the horses mouth the largest English financial daily in IRAN !!!!!!!!!!!!!!!


I know most Pakistanis live in gagaland of their own imagining. Whatever exists between India and Iran are the day to day tough economic discussions that have many trade issues to settle. Pakistan does not exist here. Its the US and Saudi slave. It failed the IPI by breaking the contract and costing Iranians billions. Its debatable if Iran would be willing to sell gas to Pakistan at a sensible price again as Pakistan has stabbed them in the back every time the issue of Gas or oil come up.
You would not buy even a barrel of Iranian crude or even gas to heat a single house as you are entirely tied to the Saudi Monarchy.


We Indians are well diversified. We are and remain friends with Iran Saudi UAE Qatar Kuwait and Bahrain and the US/Russia.

 

[N.Siddiqui]

I know most Pakistanis live in gagaland of their own imagining. Whatever exists between India and Iran are the day to day tough economic discussions that have many trade issues to settle. Pakistan does not exist here. Its the US and Saudi slave. It failed the IPI by breaking the contract and costing Iranians billions. Its debatable if Iran would be willing to sell gas to Pakistan at a sensible price again as Pakistan has stabbed them in the back every time the issue of Gas or oil come up.
You would not buy even a barrel of Iranian crude or even gas to heat a single house as you are entirely tied to the Saudi Monarchy.

...and you live in lalaland brain dead bigot, check the posts below to know what India is doing under US pressure.



India cuts Iranian oil imports in June ahead of U.S. sanctions

NEW DELHI (Reuters) - Indian refiners cut imports of Iranian oil last month as they started weaning their plants off crude from the country to avoid sanctions by the United States that are set to take effect in November.

https://in.reuters.com/article/indi...-in-june-ahead-of-u-s-sanctions-idINKBN1K10CV





India Mulls 50% Iran Oil Cut to Win U.S. Waiver

India, the second biggest crude customer for Iran, may cut its imports from the Islamic republic by half to secure a waiver from the U.S. to continue with shipments, people familiar with the matter said.


waiver on sanctions in talks last month in New Delhi, the people said, requesting not to be identified as the discussion was private. India has expressed its inability to scrap oil imports from Iran completely as its supplies are being offered at competitive rates, the people said. New Delhi expects a response as early as next month when talks resume.


https://www.bloomberg.com/news/arti...ull-50-percent-iran-oil-cut-to-win-u-s-waiver


P.S...and watch and read intl' media like Reuters and Bloomberg to know the clear picture and what is going on than the state controlled, indoctrinated Indian third grade media..used to brain wash blind Bhakt like you.

 

[AGENT-47]

India is worlds second largest importer of oil and gas from Iran.

https://oilprice.com/Energy/Crude-Oil/Who-Was-Buying-Iranian-Oil-And-What-Happens-Next.html
These are May end figures from this year

SUNDAY
August, 26 2018

India Crude Imports From Iran Increase 48 Percent

1. Energy

Wednesday, August 01, 2018
India Crude Imports From Iran Increase 48 Percent

India’s Ministry of Petroleum has announced that crude imports from Iran witnessed a massive jump this June in comparison to last year, disproving reports published by global research agencies that India had heavily cut down crude purchases from Iran due to American sanctions.

Indian refineries imported 48% more Iranian crude in June this year as compared to imports from June 2017, according to government estimates, Sputnik reported.

"Indian refineries imported 1.9 million tons of crude oil from Iran in June 2017 and placed an order for 2.82 million tons in June 2018," India's Oil Minister Dharmendra Pradhan said in parliament on Monday.

However, the minister did not provide the amount of oil shipped from Iran during the current month. Presenting monthly details, Pradhan informed parliament that Iranian crude imports had witnessed an 11.8% increase in March, 16.5% in April and 16% in May in comparison to the corresponding months of last year.

Iran's President Hassan Rouhani visited New Delhi in February this year and during his trip India promised to increase crude oil imports from Iran from 205,000 barrels per day in 2017-18 to 396,000 barrels per day in 2018-19.

Earlier, citing data from industry and shipping sources, Reuters had reported that India's monthly oil imports from Iran had declined 16% in June this year as compared to May.

The Indian Oil Ministry has revealed that India and China have discussed the possibility of forming an "oil buyers' club" that can negotiate better terms with sellers.

"Meetings have been held between India and China, both at ministerial and company levels. During these meetings, both sides expressed interest in cooperating to deal with high crude oil and gas prices, including through increased communication between companies to work towards control and reduce spikes in prices," Minister Pradhan stated in parliament.

Despite several requests and threats from the US administration to cut trade ties with Iran, the Indian government has insisted that its trade decision would be guided by the country's interest and won't be compromised for any third country."
https://financialtribune.com/articles/energy/90889/india-crude-imports-from-iran-increase-48-percent


This is from August of this year from the horses mouth the largest English financial daily in IRAN !!!!!!!!!!!!!!!


I know most Pakistanis live in gagaland of their own imagining. Whatever exists between India and Iran are the day to day tough economic discussions that have many trade issues to settle. Pakistan does not exist here. Its the US and Saudi slave. It failed the IPI by breaking the contract and costing Iranians billions. Its debatable if Iran would be willing to sell gas to Pakistan at a sensible price again as Pakistan has stabbed them in the back every time the issue of Gas or oil come up.
You would not buy even a barrel of Iranian crude or even gas to heat a single house as you are entirely tied to the Saudi Monarchy.


We Indians are well diversified. We are and remain friends with Iran Saudi UAE Qatar Kuwait and Bahrain and the US/Russia.

Don't give me Iranian sources... of course they will claim US sanctions are not working ... here is another link for you... read it carefully...
https://nationalinterest.org/blog/m...threaten-indias-importation-iranian-oil-28252

"Two events undermined that optimism, however. One was the United States increasing its threats to pull out of the Iran nuclear deal —which it ended up making good on in May. The other was Saudi Arabia, Iran’s main political rival in the Middle East, stepping up its energy diplomacy toward India.

In April, Saudi Aramco signed a deal with a consortium of Indian companies led by the state-owned Indian Oil Corporation to take a 50 percent stake in a $44 billion mega-refinery and petrochemicals complex that will be built in the port city of Ratnagiri. The Saudis calculated that helping India create one of the world’s largest refining and petrochemical complexes would not only help tilt it away from Iran but also guarantee long-term Saudi crude sales to India

Meanwhile, the United States has been increasing its diplomacy toward India, with the key goal of persuading India to embrace sanctions against Iran.

In addition, America’s ambassador to the United Nations, Nikki Haley, who is of Indian descent, visited New Delhi last month to ask that India reduce its Iranian oil imports.

A U.S. Treasury Department delegation followed. It was led by Marshall Billingslea, the department’s assistant secretary for anti-terrorism financing. Given Billingslea’s background, one topic was likely to be a scheme that Iran and India used to avoid previous U.S. sanctions against Iran.

The two visits are already yielding results for Washington.

Indian refineries have begun canceling oil import contracts with Iran. Hindustan Petroleum, which owns India’s third-largest refinery, canceled an Iranian oil shipment in July when its insurance company refused to cover the sale because of impending U.S. sanctions.

In addition, news surfaced that Indian conglomerate Reliance Industries , which owns the largest refining complex in the world, also planned to halt Iranian oil imports.

Fearing aggressive Trump administration policies towards Iran, India is also expected to scrap the rupee-based trade agreement it concluded with Iran three years ago, Iranian sources say."

 

[Turingsage]

...and you live in lalaland brain dead bigot, check the posts below to know what India is doing under US pressure.



India cuts Iranian oil imports in June ahead of U.S. sanctions

NEW DELHI (Reuters) - Indian refiners cut imports of Iranian oil last month as they started weaning their plants off crude from the country to avoid sanctions by the United States that are set to take effect in November.

https://in.reuters.com/article/indi...-in-june-ahead-of-u-s-sanctions-idINKBN1K10CV





India Mulls 50% Iran Oil Cut to Win U.S. Waiver

India, the second biggest crude customer for Iran, may cut its imports from the Islamic republic by half to secure a waiver from the U.S. to continue with shipments, people familiar with the matter said.


waiver on sanctions in talks last month in New Delhi, the people said, requesting not to be identified as the discussion was private. India has expressed its inability to scrap oil imports from Iran completely as its supplies are being offered at competitive rates, the people said. New Delhi expects a response as early as next month when talks resume.


https://www.bloomberg.com/news/arti...ull-50-percent-iran-oil-cut-to-win-u-s-waiver


P.S...and watch and read intl' media like Reuters and Bloomberg to know the clear picture and what is going on than the state controlled, indoctrinated Indian third grade media..used to brain wash blind Bhakt like you.

We have cut imports by 12%. Even if we cut by 50% we will remain Irans second largest export market for its oil by a LONG MARGIN worth tens of Billion Dollars. You on the other hand import neither oil or gas from your Islamic brothers next door and NEVER WILL, yet denigrate a relationship you know nothing about, and you advise throw up bile while NOT BUYING A CENTS WORTH OF OIL OR GAS FROM IRAN.

 

[BHarwana]

The urea plants have been shut down due to no gas. The price of urea is going up and all that urea could have been exported to Srilanka and many countries. People here cannot get a foreign policy straight.
If urea goes up price of crops goes up and exports decrease?

 

[N.Siddiqui]

We have cut imports by 12%. Even if cut by 50% we will remain Irans second largest export market for its oil by a LONG MARGIN worth tens of Billion Dollars. You on the other hand you import neither oil or gas from your Islamic brothers next door and NEVER WILL, yet pontificate about a relationship you know nothing about, and you advise us while NOT BUYING A CENTS WORTH OF OIL OR GAS FROM IRAN.

How does it anyway bothers you if Pakistan doesn't imports oil or gas from Iran...and Pakistan will be going for the IP gas pipeline in due course of time, how this is an issue for you or any Indian.

If you know anything about the Saudi, Iran animosity, Pakistan getting Saudi Arabia oil on deferred payment, discounts and below the intl' prices hence the imports from Saudia, add to this the close relations, and you can add here US sanctions as well on Iran.

BTW as of now, India is also mulled by US to stop buying oil from Iran and start the Saudi oil imports, check the above article posted by AGENT-47. Anyway, we are not concerned if India buy oil from Iran, Saudia or from elsewhere, and it shouldn't concern you as well where Pakistan do the same.

 

[Turingsage]

Pakistan will be going for the IP gas pipeline in due course of time,

You have had many many years to build your side of the pipeline as per the contract You have already stiffed the Iranians out of billions by asking them to build their side of the pipeline. You have not and will not import gas or oil from Iran whatever chest thumping you do on PDF. It was Agent47 that brought India into this discussion even though this is about Pakistan and I was disabusing him about concocted fantasies .

 

[N.Siddiqui]

You have had many many years to build your side of the pipeline as per the contract You have already stiffed the Iranians out of billions by asking them to build their side of the pipeline. You have not and will not import gas or oil from Iran whatever chest thumping you do on PDF. It was Agent47 that brought India into this discussion even though this is about Pakistan and I was disabusing him about concocted fantasies .

-One can easily decipher and understand that the article was simply copy pasted by the OP AGENT47 and that was not his wordings and it was in the publication, there was given links as well, along with the posted material, what is the big deal here, no need to get all worked up, any person with some mental faculties would have understood that.

- Also TAPI includes India and initially India was into IP, Iran Pakistan gas pipeline as well, so it was pertinent to mention India and that India draws herself away from that Iran/Pakistan/India gas pipeline, Pakistan has never asked for the reason...and again that wasn't the words of the OP.

- Also Pakistan stiffing out billions from Iran should concern Iran on IP gas pipeline, why you are getting your pants in a twist, none of your business, and Pakistan paying demarrage to Iran is also an Iran-Pakistan matter.

As for the chest thumping everyone knows here who are the leaders here, not just in the PDF but just about any forum.

 

[BHarwana]

Get the IP pipeline built another urea plant and export urea to world.
It is a 40 billion cubic meter pipeline

We are sitting at the face of the gas pipeline and yet we are only at 6th position in production. This is really sad situation.

 

[N.Siddiqui]

Get the IP pipeline built another urea plant and export urea to world.
It is a 40 billion cubic meter pipeline

Pakistan 6th rank is not bad and India fertilizer production is about 4.5 times higher than Pakistan, Qatar is an exception. India population is 6.5 times higher than Pakistan so per capita Pakistan is better. But true Pakistan need to get IP pipeline going...took a back seat during Sharif govt.

Also so much hype about new oil gas discoveries in Pakistan, all need to be commercially exploited like in Karak KPK, somewhere around Baluchistan, forgetting the name. Local production need to be streamlined on fast track to save precious foreign exchange.

 

[El Sidd]

IP is not a viable project. Stop wasting bandwidth about it