Iran can halt gas export agreement with Pakistan - minister
Azerbaijan, Baku, Oct. 30 / Trend, S. Isayev, T. Jafarov
Iran can halt the gas export agreement with Pakistan, since there are some issues, Iran's Oil minister Bijan Namdar Zanganeh said, Mehr news agency reported.
The minister went on to add that if these issues continue, then Iran might halt the agreement.
"Iran should be exporting gas to Pakistan next year. Currently the pipeline for this export is being constructed," Zanganeh said.
He went on to add that this agreement without participation of India and China is not economically beneficial to Iran, and thus, it can be reviewed.
"If Pakistan not to accept the agreement, then it will have to pay the fine. However the country doesn't have enough money to pay, and thus it will accept it," Zanganeh said.
The minister went on to say that Iran will continue to hold negotiations with Pakistan regarding the pipeline, and then will make a decision. He didn't reveal any more details.
The $1.5 billion IP project has been lingering since 1995, when Iran-Pakistan signed a memorandum of understating (MoU) to lay the pipeline. Under the accord, signed in June 2010, Iran will provide about 750 million cubic feet per day (MMCFD) to Pakistan for 25 years.
The deal can be extended by five years and the volume may go up to 1 Billion Cubic Feet per Day (BCFD).