Post Reply 
 
Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
IPI deal to be finalised in a month
05-27-2009, 07:47 AM
Post: #1
IPI deal to be finalised in a month
ZAFAR BHUTTA
ISLAMABAD (May 26 2009): Following settlement of gas price issue at 80 percent of crude, Pakistan and Iran are expected to finalise the deal on Iran-Pakistan-India (IPI) gas pipeline project in Turkey within a month.

Petroleum Ministry will seek the formal approval from the Economic Co-ordination Committee (ECC) of the Cabinet in its upcoming meeting to ink final deal on IPI with Iran. Advisor to Prime Minister on Petroleum and Natural Resources Dr Asim Hussain revealed to the Business Recorder on Monday that final agreement on the gas sales purchase agreement (GSPA), finalised on Sunday in Tehran, would be singed in the next two to four months in Turkey - an agreement that will be supervised by foreign country laws.

He also confirmed the import of gas from Iran at the Iranian offered price of 80 percent of crude oil. "Pakistan has made a commitment with Iran to import minimum 750 million cubic feet gas per day and maximum one billion cubic feet gas per day," Dr Asim said.

Some 1,100 of the 2,100-kilometre pipeline would be laid in Iranian territory and 1,000 kilometres in Pakistan. According to the initial design of the project, 2,700 kilometre-long pipeline was proposed to cover around 1,100 kilometres in Iran, 1000 kilometers in Pakistan and around 600 kilometres in India at a pipe diameter of 56 inches.

Iran has specified the diameter to secure the possibility for India to join the project, but Pakistan has come to the conclusion that India is not interested in the gas deal and, therefore, the size of the pipeline may be reduced to 42 inches.

The Petroleum Advisor said that Pakistan and Iran had agreed on the size of pipeline to 42 inches in diameter. After the reduction in size, Pakistan's cost of pipeline had been reduced from two billion dollars to 1.2 billion dollars, the Petroleum Advisor said.

According to official sources, after the reduced size of pipeline, India is effectively out of the project and technically it would not be possible for Iran to transmit the gas through pipeline to India if it decides to join later.

Pakistan and Iran finalised the GSPA in December 2007 and the final agreements were planned to be singed in February 2008, but when Iran reopened some issues of the GSPA, the signing of the agreement was delayed. In January 2008, Pakistan and Iran agreed on a gas price formula at 45 percent of crude oil in global market.

However, during the meeting in September 2008, Iran offered gas price of 85 percent of crude oil and Pakistan and Iran again held talks in the end of December 2008 in Tehran. Pakistan offered 60 percent of crude oil price and revised it later to 70 percent of crude oil and Iran scaled down its offered price to first 78, but its parliament rejected that offer and revised it to 80 percent of crude oil.

According to an analysis, the imported Iranian gas will result in annual savings of one billion dollars due to reduced import of furnace oil, (at crude oil price of 50 dollars per barrel). Similarly, there will be an annual saving of 735 million dollars if equivalent quantity of LNG is imported. The savings will increase in line with the hike in global crude oil price.

http://www.brecorder.com/index.php?id=1849
Quote this message in a reply
Post Reply 


Possibly Related Threads...
Thread: Author Replies: Views: Last Post
  Punjab Chief Minister Announces Anticipated Opening of LRR SL-3 by Month-End LRE-Azan 0 582 01-12-2024 02:17 PM
Last Post: LRE-Azan
  LDA City is set to hand over plot possessions next month LRE-Azan 0 473 11-24-2023 04:30 PM
Last Post: LRE-Azan
  LDA Major Infrastructure Projects in Lahore to Open to Traffic This Month LRE-Azan 0 598 11-08-2023 06:52 PM
Last Post: LRE-Azan
  CDA Decided to Auction Commercial & Residential Plots Next Month LRE-Azan 0 666 09-30-2023 04:55 PM
Last Post: LRE-Azan
  IJP Road to open to traffic by the end of month LRE-Azan 0 908 01-26-2023 03:05 PM
Last Post: LRE-Azan
  Islamabad: Work on Bhara Kahu Bypass to Start Next Month LRE-Azan 0 1,295 11-02-2021 06:34 PM
Last Post: LRE-Azan
  Metro Bus service will start functioning by the end of the next month. Salman 0 5,558 04-30-2015 05:19 PM
Last Post: Salman
  Islamabad CDA to auction commercial plots from next month Salman 0 5,448 03-17-2014 01:30 PM
Last Post: Salman
  Construction of 500,000 low-income group houses start next month Salman 0 4,936 02-25-2014 01:23 PM
Last Post: Salman
  Plan finalised for commercial plots auction in I-12 Salman 0 5,905 06-10-2013 12:27 PM
Last Post: Salman
  Work restarts, project likely to be completed next month Salman 0 5,091 04-23-2013 12:08 PM
Last Post: Salman
  Work on Mureer Tunnel to start by month-end Salman 0 5,036 11-19-2012 12:15 PM
Last Post: Salman
  CDA to auction commercial, residential plots next month Salman 0 6,294 10-25-2012 04:30 PM
Last Post: Salman
  ‘Construction work to start next month’ Salman 0 4,133 08-06-2012 12:36 PM
Last Post: Salman
  Plan finalised to link 7th Avenue with Murree Road Salman 0 5,426 07-04-2012 02:42 PM
Last Post: Salman
  Building works in Zulfikarabad to start next month Salman 0 3,965 05-31-2012 01:14 PM
Last Post: Salman
  Liberty Park and RideL: Plaza Arrangements finalised for auction of 54 shops Salman 0 4,645 05-08-2012 03:12 PM
Last Post: Salman
  Liberty Park and RideL: Plaza Arrangements finalised for auction of 54 shops Salman 0 4,361 05-07-2012 03:52 PM
Last Post: Salman
  Development work in G-14 to start within one month Salman 0 4,712 04-30-2012 12:25 PM
Last Post: Salman
  CDA to launch transport service within month Salman 0 4,206 03-12-2012 12:20 PM
Last Post: Salman

Forum Jump:


User(s) browsing this thread: 1 Guest(s)