Baku, Azerbaijan, Nov.10
By Khalid Kazimov - Trend:
A senior Iranian gas official has said Tehran is not planning to fine Pakistan over its delay in completing construction of the Peace gas pipeline.
"We are not concerned about Pakistan's new contract to purchase LNG from Qatar," Alireza Kameli, managing director of National Iranian Gas Exports Company, told Mehr news agency Nov 9.
Iran and Pakistan signed a gas agreement under former Iranian President Mahmoud Ahamadinejad which, according to Pakistan, was set to import 22 million cubic meters per day (mcm/d) of natural gas from Iran, as of 2015. But because of financial problems, Pakistan has not yet managed to complete its section of the Peace pipeline project.
Based upon the agreement, Pakistan was also supposed to pay $200 million to Iran each month as a penalty for delays in carrying out the project.
Meanwhile, Iran's Oil Minister, Bijan Namdar Zanganeh, said last September that Pakistan, because it is suffering from financial problems, has asked Iran not to penalize it for the delay. According to Zanganeh, negotiations on this issue are continuing.
Meanwhile, Pakistan and China signed a $46 billion agreement during President Xi Jinping's visit to Islamabad in April. A framework agreement between Pakistan and China for construction of the Gwadar-Nawabshah gas pipeline and Gwadar LNG terminal was inked, as well. It is expected that China will build a LNG terminal in Gwadar and construct a pipeline from there to Nawabshah, as part of a $3 billion investment.
Deputy Iranian Oil Minister Amir Hossein Zamaninia said earlier this year that Tehran would not fine Pakistan or cancel the gas agreement with it due to long delays in construction of the pipeline in Pakistan.
Zamaninia further said that Pakistan's gas needs are greater than the volume specified in the agreement with Qatar and Iran hopes that Pakistan would purchase Iranian gas, as well.