Peace pipeline to be stretched to China

Oil&Gas Materials 22 February 2014 17:03

Baku, Azerbaijan, Feb. 22

By Rahim Zamanov - Trend:

The peace pipeline will be stretched to China through Pakistan, Iranian Deputy Oil Minister Hamidreza Araqi said on Feb. 22, Iran's Mehr News Agency reported.

"Iran also plans to export LNG to China, "Araqi said.

Araqi further mentioned India and Turkey as attractive markets for Iranian gas.

"Iran pursues two scenarios to export natural gas to Europe," the deputy minister said, explaining that the first proposed route is through Turkey, and the second one is through Iraq and Syria.

Pakistan's ambassador to Iran Noor Muhammad Jadmani on Feb. 9 rejected western media outlets' reports on Islamabad's unwillingness to continue with the peace pipeline project, Iran's ISNA News Agency reported.

"Islamabad faces some obstacles in implementing the project, but it feels obliged to finish it," Jadmani said.

"Iran and Pakistan have deep and close relations, and our goal is to enhance these relations," the ambassador added.

Iran rejected Pakistan's request for supplying gas at discount rate in December.

The request was made by Pakistan's Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi during his visit to Tehran.

Reducing the price of the gas to be delivered via the Iranian-Pakistani pipeline, as well as extending time for building the Pakistani section of the pipeline, and financing about $500 million by Iran were suggested by Khaqan Abbasi in a meeting with Iranian officials.

He said that Pakistan is committed to building a multi-billion-dollar gas pipeline from neighboring Iran, but the threat of international sanctions makes the task difficult.

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

APP on Nov. 28 quoted Shahid Khaqan Abbasi as saying that Pakistan will find an opportunity to complete the proposed gas pipeline project within a year.

"I think trade restrictions will be lifted on Iran following the agreement between Iran and world powers," Abbasi said.

Abbasi said that Pakistan has intensified its efforts to implement the Iran-Pakistan gas pipeline project.

The peace pipeline project was originally initiated between Iran and Pakistan. Later India expressed interest in joining this project.

The Iranian-Pakistani gas pipeline projected to cost $1.2-1.5 billion, would enable the export of 21.5 million cubic meters of Iranian natural gas to Pakistan on a daily basis.