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Pakistan, Iran Ink MoU on Gas Pipeline Project

Posted on: Wednesday, 20 July 2005, 15:01 CDT

Pakistan, Iran ink MoU on gas pipeline project

ISLAMABAD, July 7 (Xinhua) -- Pakistan and Iran Thursday inked a Memorandum of Understanding to speed up work on the proposed 4.5- billion dollar Iran-Pakistan gas pipeline project.

"From paper we are going to the ground and it is very important for the people of the region," Iranian Petroleum Minister said after the signing ceremony.

Both sides were optimistic that the project would hit the ground by 2006 provided the negotiations related to the technical, contractual and commercial aspects of the pipeline complete on schedule.

The MoU was signed following two days' talks between Iranian Petroleum Minister Bijan Namdar Zangeneh and his Pakistani counterpart Amanullah Khan Jadoon.

The Iranian minister was to visit Pakistan earlier this month but the visit was delayed due to the Iranian presidential elections. He was hopeful that the final agreement would be signed by next April.

"After more than 10 years, this dream is going to be a reality, " Namdar said.

Petroleum Minister Jadoon said Pakistan would face shortage of gas in 2010 due to unprecedented growth. Pakistan is currently studying different options to import natural gas to meet its growing energy needs.

The projects under consideration include two overland gas pipelines; Iran-Pakistan-India and a 3.5-billion-US dollar 1500 km long urkmenistan-Afghanistan-Pakistan, besides a proposed 1,610 km Gulf-South Asia (GUSA) under sea pipeline from Qatar.

Petroleum ministers from India, Qatar and Turkmenistan have already visited Pakistan to discuss the proposed projects. Pakistan and India have also set up a Joint Working Group at the secretary level to accelerate work on the proposed gas pipeline project. They would also exchange information regarding financial structuring, technical, commercial, legal and other issues to realize the project.

The United States, however, has voiced objections against the 2, 600-kilometer overland gas pipeline project over Tehran's nuclear program. It has repeatedly asked both Pakistan and India not to go ahead with it. Both Islamabad and New Delhi deny any pressure from Washington and say they will pursue the project in their national interest despite reservations by Washington.

Source: Xinhua News Agency - CEIS

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