Iran not to export gas to Pakistan in 2014

Oil&Gas Materials 20 September 2014 21:08 (UTC +04:00)

Tehran, Iran, Sept. 20
By Milad Fashtami - Trend:

Iranian Deputy Oil Minister Ali Majedi said Tehran will no export any gas to Pakistan in 2014.

"Pakistan has not completed its share of the pipeline yet," he explained, Iran's ISNA News Agency reported on September 20.

"Pakistanis blame the delay on lack of finance due to sanctions but that is not acceptable," he added.

Majedi went on to note that Iran is ready to start gas exports to Pakistan as soon as the other side completes its share of the pipeline.

"Islamabad has repeatedly declared its readiness ti import gas from Iran," he noted.
Majedi said on July 19 that a new scenario has been proposed for the construction of peace pipeline.

"Pakistan has not constructed his share of the pipeline so far," he said, Iran's ISNA News Agency reported.

"We are currently studying a scenario in which a third company constructs the pipeline and buys gas from Iran and sell it to Pakistan," he explained.

The Managing Director of Iran's Gas Engineering and Development Company Alireza Gharibi said on March 29 that Tehran has so far completed laying 123 kilometers of pipeline on the Iranian soil and just the Iranshahr part is left.

He went on to note that a total of 300 kilometers of pipelines is yet to be laid in both sides.

"If Pakistan starts construction of its share, then Iran can start pumping gas to Islamabad by December," he explained.

"In case Islamabad fails to construct its share, we need to use our pipes elsewhere," Gharibi said.
He went on to note that by laying Iran-Pakistan gas pipeline, Tehran is mainly investing to expand its national gas network and only 30 percent of the expenses are related to the exports project.

Iranian Deputy Oil Minister Hamidreza Araqi said on Feb. 22 that the peace pipeline will be stretched to China through Pakistan, Iran's Mehr News Agency reported.
"Iran also plans to export LNG to China," he explained.

Araqi further referred to India and Turkey as attractive markets for Iranian gas.
Pakistan's ambassador to Iran Noor Muhammad Jadmani on Fe. 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," he said.

"Iran and Pakistan have deep and close relations, and our goal is to enhance these relations," he 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 by the Iran-Pakistan pipeline, as well as extending time for building Pakistan's side 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 had 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 agreement between Iran and world powers," he said.

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

The Iran-Pakistan 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.