...

Pakistan denies Iran’s agreement to waive $200M monthly penalty

Oil&Gas Materials 28 December 2014 17:12 (UTC +04:00)

Tehran, Iran, Dec. 28

By Milad Fashtami - Trend:

Pakistan's minister of petroleum and natural resources, Shahid Khaqan Abbasi, rejected the recent reports that Iran agreed to waive the penalty clause of contract, under which Pakistan is bound to pay $200 million a month for not meeting the gas pipeline deadline of Dec. 31, 2014.

The minister told the IRNA news agency that the Iranian and Pakistani companies responsible for carrying out the project will meet in Islamabad in the coming days to discuss the remaining issues.

Earlier on Dec. 27 the British newspaper, Financial Times, said Iran agreed to waive the penalty clause if Pakistan shows seriousness in constructing the pipeline.

Iran plans to export gas to Pakistan through a pipeline dubbed the Peace Pipeline.

India was originally supposed to join the project, but later cancelled its participation in it.

The Iran-Pakistan gas pipeline, projected to cost $1.2 to $1.5 billion, will enable the export of 21.5 million cubic meters of Iran's natural gas to Pakistan on a daily basis.

The managing director of Iran's Gas Engineering and Development Company, Alireza Gharibi, said on March 29 that by laying Iran-Pakistan gas pipeline, Tehran is mainly investing to expand its national gas network and only 30 percent of the expenses are related to the exports project.

Pakistan has not completed its share of the pipeline yet.

Iran says it is ready to start gas exports to Pakistan as soon as the other side completes its share of the pipeline.

Iran's Deputy Oil Minister Hamidreza Araqi said Feb. 22 that the Peace Pipeline will run to China through Pakistan.
Iran rejected Pakistan's request for supplying gas at discount rate in Dec., 2013.

The Iranian Oil Minister Bijan Namdar Zanganeh previously said he is not optimistic about Tehran's gas exports to Islamabad.

Latest

Latest