Saturday, May 29, 2010

Iran to Start Construction of Gas Pipeline to Pakistan

Iran and Pakistan on Friday signed a “sovereign guaranteed” Gas Sale and Purchase Agreement (GSPA) to begin the construction of a major gas pipeline linking Asalooyeh, a southern Iranian industrial town on the Persian Gulf and Iranshahr, near the border with Pakistan. The pipeline will carry natural gas from Iran’s huge South Pars field in the Gulf.

“I am extremely pleased that after 17 long years this project is finally starting. It would help us generate energy for our industrial growth,” Pakistani Petroleum Minister Syed Naveed Qamar told reporters after GSPA signing ceremony in Islamabad.

“Iran had assured us that they would complete the project between two-and-half to three years, ahead of schedule,” Qamar added. “As per current project implementation schedule, the first gas flow is targeted by end 2014.”

If India joins the project, as originally planned, the pipeline will carry natural gas to that country through Pakistan and the pipeline will be named Iran-Pakistan-India (IPI) pipeline. India has not yet signed off on the deal.


Anonymous said...

I wonder if this is a viable business option considering the lawlessness in Pakistan. I mean Pakistan is not a country with any security infra-structure to think of. As soon as the pipeline becomes operational, it will be damaged daily. As such the cost to operate and maintain this pipeline is going to be prohibitive.

Anonymous said...

I believe Iran should stay completely clear of Pakistan. The failed state is bad news for everyone.