Iranian president emphasizes completing IP pipeline

Business Materials 22 December 2012 12:37 (UTC +04:00)

Azerbaijan, Baku, Dec. 22/ Trend G.Mehdi/

Iranian President Mahmoud Ahmadinejad during his trip to Pakistan on November 22 emphasized the need to complete the Iran-Pakistan gas pipeline according to the schedule, IRIB reported.

Iran will start building the Pakistan section of the IP pipeline by the next month, IRIB quoted National Iranian Gas Company's managing director Javad Owji as saying.

The Iran-Pakistan gas pipeline, projected to cost $1.2-1.5 billion, is aimed to export a daily amount of 21.5 million cubic meters of Iranian natural gas to Pakistan.

Iran has already constructed more than 900 kilometers of the pipeline on its territory.

Iran has proposed a $250-million loan to Pakistan to help finance the project. Iran has pledged to secure the required $500 million to complete the Pakistani section of the project and the rest will be ensured by the Pakistan government.

It has been planned that the Iranian and Pakistani companies to form a joint venture to finance the project.

Pakistani Foreign Minister Hina Rabbani Khar said on Thursday that President Asif Ali Zardari will soon visit Iran and the gas pipeline project would be completed according to the schedule.

According to the project proposal, the pipeline will begin from Iran's Assalouyeh Energy Zone in the south and stretch over 1,100 km through Iran. In Pakistan, it will pass through Baluchistan and Sindh.