Iran-Pakistan gas pipeline beneficial to both sides, however it faces many obstacles - expert

Azerbaijan, Baku, March 6 /Trend S.Isayev/

Under normal circumstances, The Iran-Pakistan gas pipeline project is beneficial to both sides, U.S. Northeastern University Professor Kamran Dadkhah told Trend.

Dadkhah was commenting on the advantages and disadvantages on the natural gas pipeline that Iran and Pakistan plan to begin sometime in 2014.

He added, that the pipeline project would be even more beneficial for neighboring countries.

"Iran possesses the second largest gas reserves in the world and Pakistan is in need of sources of energy," Dadkhah said. "The gas exported through the pipeline will have low processing and transportation costs".

Furthermore, he said, Iran, which has been shut out of Caspian Sea gas projects, will be able to export gas.

Iran and Pakistan signed the Gas Sale and Purchase Agreement (GSPA) in June 2009. The Government of Pakistan has already determined that the imported natural gas from Iran would provide the cheapest and most suitable fuel for power generation.

It has been estimated that 750 mmcfd gas would help generate around 4,000MW of electricity, besides providing job opportunities in the backward areas of Balochistan and Sindh. Iran has already laid the 56-inch diameter pipeline for a distance of 900 km from Assaluyeh to Iran Shehr.

The remaining 200 km to bring the pipeline to the Pakistani border are likely to be completed in the next two years. Pakistan, on its part, is planning to complete its segment of the pipeline by the end of 2014.

Currently, Pakistan is facing severe energy crisis, believes that the multi-billion dollar gas pipeline is its best bet to partially resolve the problem.

Dadkhah also mentioned the Southeast region of Iran and adjacent areas of Pakistan, will benefit from the pipeline, if the project is launched.

"These areas are poor and less developed regions. Investment in the pipeline would be a boon to the economy of these provinces," he said. "The problem is that the conditions are not normal. Iran is under international sanctions, therefore, the project can face many obstacles".

Among the mentioned obstacles, Dadkhah names mostly financial ones, and those of technological nature.

"Even if the pipeline is completed, there will remain problems of security and processing payments," Dadkhah said. "Terrorist activities are occurring on both sides of the border between Iran and Pakistan. It would be hard and costly to maintain the safety of the pipeline".

Dadkhah also believes that Pakistan will have its share of problems, paying for Iranian gas.

"It is unclear how Pakistan will pay for the gas," he said. "The economy of Iran and Pakistan are not complementary".

According to Dadkhah, Iran will be forced to accept low quality products from Pakistan in return for the exported gas. He added that what's more important is that Pakistan needs the aid from the United States. He also believes that its likely for Pakistan, along the way, to scrap the project, under the U.S. pressure.

"It is likely that along the way, under pressure or incentives from the US, Pakistan scraps the project. That was indeed what happened in 2009 when India practically pulled out of the project," Dadkhah said.

Despite the Iran-imposed sanctions, and negative statements from the U.S. regarding the pipeline, Pakistan is determined to go further with the project. Recently, it has been reported that Iran agreed to provide $250 million loan for the Iran-Pakistan gas pipeline project.

Minister for Petroleum and Natural Resources Dr Asim Hussain said that Pakistan was asking for a $500 million, however Iran agreed to only half of that sum. Pakistani delegation should be visiting Iran soon, sometime next month, to discuss and finalize the deal about the gas pipeline project.

"The Iranian economy and Iranian people have tremendously suffered from international sanctions. It is time that the leadership put the interest of the country above its own interest," Dadkhah concluded.

Central Bank of Azerbaijan allocates funds to support financial literacy
Central Bank of Azerbaijan allocates funds to support financial literacy
Lending to electricity sector in Azerbaijan increases
Lending to electricity sector in Azerbaijan increases
Azerbaijan's ADIF continues compensating depositors of closed banks
Azerbaijan's ADIF continues compensating depositors of closed banks
Loading Bars
Latest
Forum in New Zealand focuses on New Zealand-China economic cooperation, development opportunities
WHO head claims as global COVID cases drop to 630,000 per day
US Department of Energy retains forecast for Brent oil price at $62.3 per barrel in 2021
Samsung sees pandemic-led appliances boom extending run to rest of year
Next meeting on electoral reform to be held on May 14-16
Central Bank of Azerbaijan allocates funds to support financial literacy
Turkish State Mine Administration opens tender for rental of vehicles
Lending to electricity sector in Azerbaijan increases
Kazakh KazMunayTeniz to buy diesel fuel via tender
Iran's Petropars Company orders equipment from local manufacturers
Turkey reports over 14 400 COVID-19 cases
Some of children may be taken to Moscow for treatment after school shooting in Kazan
UN chief condemns Kazan school shooting
Gaza block collapses after Israeli strike, rocket hits Tel Aviv building
Kazakhstan supports solution of Palestinian-Israel conflict by peaceful means
Georgia likely to receive Novavax and Johnson & Johnson vaccines in July
Kazakhstan’s liquids production down in March - OPEC
COVID-19 cases decrease in 80 provinces in a week
Iran, Afghanistan discuss Afghan peace process
Israeli PM says to increase strikes against Gaza militants
Arab FMs kick off emergency meeting on Jerusalem tensions
Hamas and Israel step up attacks as Jerusalem unrest ignites Gaza
No need to evacuate people injured in Kazan school shooting to Moscow
Сompetition season of 2021 successfully started - European Gymnastics President
Identification of victims in Kazan school shooting completed
26 COVID-19 patients dead allegedly due to oxygen shortage in India's Goa
Japan's COVID-19 patients in "serious condition" hit fresh record high
Azerbaijani president, first lady express condolences to president of Tatarstan
President Aliyev expresses condolences to Russian counterpart
Iran's Energy Exchange announces products to be on sale on May 12
Bahar Azadi gold coin price continues to rise in Iran
Foreign investors waiting for decision related to FATF in Iran – official
Azerbaijani journalists view State Border Service's Military Hospital in liberated Gubadly (PHOTO)
Demand for OPEC crude in 2021 revised up
Turkish export of electrical goods to Azerbaijan drops
Shares of Kazakhstan's KAZ Minerals delisted from stock exchange
Export Development Bank of Iran to provide loans to startup companies
Data on cargo shipment through Turkish Kocaeli port over 1Q2021 revealed
Kazakhstan reports increase in new housing prices
Azerbaijan's ADIF continues compensating depositors of closed banks
Turkey sees increase in cement exports to Georgia
Cargo movements in Iran’s Shahid Rajaee port increase
OPEC marks increase in Baku-Tbilisi-Ceyhan oil exports
Guaranteed wheat purchasing from farmers in Iran continues
Iran to inaugurate new airport in Kurdistan Province
Iran to build new factory at Amirabad port
OPEC revises up forecasts for Azerbaijan’s liquids supplies in 2021
Azerbaijan reveals number of vaccinated citizens for May 11
Azerbaijan confirms 514 more COVID-19 cases, 1,306 recoveries
Iran reveals COVID-19 data for May 11
Iran’s PMO unveils volume of cargo transportation via Abadan Port
Iran shares unemployment data
Georgia export to Germany increased by 40%
Uzbekistan, Kyrgyzstan eye accelerating implementation of roadmap for industrial co-op
FDA to attract funds to support reforms in Uzbekistan
Uzbek-Chinese JV opens tender for spares for gas pumping units
Iran starts mass production of coronavirus vaccine
Russia boosts steel imports from Turkey
Volume of cargo shipment via Turkish Karabiga port in 1Q2021 revealed
Renewables to account for 90% of total global power capacity increases in 2021-2022
Annual renewable capacity additions reach highest level since 1999
Oil dips as pipeline outage fears ease, India weighs
First batch of Sputnik V vaccine arrived in Azerbaijan just a few days ago, more significant shipments expected later this month - Russian FM
Statements reeking of revanchism, are very dangerous, first of all for Armenian side - President Aliyev
Restriction on movement likely to ease in late May in Georgia
Since end of hostilities, we transferred all prisoners of war - President Aliyev
Azerbaijan shows goodwill in matters related to humanitarian issues - President Aliyev
Post-conflict situation, of course, dictates need for closer contacts at all levels - President Aliyev
Heroization of Nazism in all its forms - unacceptable - Azerbaijan FM
Gaza escalation weighs on shekel
Issue of unblocking transport in region must be prioritized - Azerbaijani FM
Humanitarian issues must be resolved as quickly as possible - Russian FM
Russian FM notes key factor in normalizing situation in Karabakh
Russia highly appreciates work of trilateral group of deputy prime ministers of three countries - Russian FM
Azerbaijan committed to fulfilling its obligations under trilateral agreement - Azerbaijani FM
Nine killed in Kazan school shooting
Second batch of Sputnik V vaccine to be delivered to Azerbaijan by late May - Russian FM
FMs of Azerbaijan, Russia sign plan of consultations for 2021-2022 (PHOTO)
Azerbaijan condemns all terror acts - Azerbaijani FM
Uzbekistan reveals number of vaccinated people
Uzbekistan considers attracting French companies to partake in state assets privatization
Uzbekistan signs memorandum of understanding with French Rothschild & Cie
Uzbekistan reveals numbers of companies with dominant position in market
Uzbekistan taking measures to improve availability of public services
Iran and India trade declines due to COVID-19
Azerbaijani president congratulates Azerbaijani people on Ramadan holiday
Armenian railways are owned by Russian railways, therefore, we are discussing issue mainly with Russian side - President Aliyev
Indian Army sets up 100-bedded hospitals in Faridabad, Chandigarh, Patiala
Indian FY22 growth may slip to 8.2%: Crisil
Twitter Donates $15 Million For COVID-19 Relief In India
President Ilham Aliyev criticizes statements of Canada's, France's MFAs: Let them mind their own business
Startups fight COVID-19: How healthtech startup Meddo is helping tackle the hospital bed crisis
Outpouring of support from US for India, Covid-19 help touches USD half a billion
Zangazur corridor must and will be opened - President Aliyev
PFPA-Musavat duo mobilized all their resources to overthrow Heydar Aliyev in Nakhchivan - President Aliyev
This visit to Nakhchivan has great symbolic meaning - President Aliyev
President Aliyev warns revanchists in Armenia: They shouldn’t play with fire
Military equipment available to Nakhchivan Army today probably superior to equipment of some advanced countries - President Aliyev
Russian FM visits tomb of National Leader Heydar Aliyev
There is no territorial unit called Nagorno-Karabakh in Azerbaijan - President Aliyev
All news