ISLAMABAD: Iran has waived off penalty over delay in construction of Iran-Pakistan (IP) Gas Pipeline and also extended the time limit for the construction of the project, while Pakistan has now decided to construct the gasline by next year.
Sources in the petroleum ministry told Daily Times that Iranian Minister for Economic Affairs & Finance, Dr. Ali Taieb Nia on Monday met with Minister for Petroleum and Natural Resources Shahid Khaqqan Abbasi and conveyed the decision ofIranian government regarding IP gas pipeline project. Iranian Minister informed Shahid Khasqqan Abbasi that Iran has been extending the time limit for the construction of IP gasline project and waiving off the penalty worth $3 million/daily, which was due on Pakistan from 1st January 2015 for not constructing the gasline in time. Similarly, Pakistan was bound to purchase Iranian gas by January 2015 under the agreement.
They also told that Pakistan has decided to construct IP gasline by the next year and a Chinese firm would construct the gas pipeline with 85 percent loan. Pakistani official would hold a meeting with a Chinese firm for the construction of gasline today in Gawadar, they added. In a press statement, Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi has said that Iran-Pakistan Gas Pipeline Project was vital for the Pakistan’s energy needs and Government of Pakistan was fully committed to complete this project. He said this while talking to an Iranian delegation led by Dr. Ali Taieb Nia, Iranian Minister for Economic Affairs and Finance, who called the Minister in Islamabad on Monday.
Shahid Khaqan Abbasi said that due to the international sanctions on Iran, Pakistan has been unable to complete projects on its side. Despite our best efforts banks, International contractors and equipment suppliers were not ready to be involved in this project. This Minister told the visiting delegation that we were now planning to complete this project in two steps; first, we are installing LNG terminal at Gawadar Port and secondly a 42” pipeline of 700 KM length would be laid from Gawadar to Nawabshah for onward transmission of gas to the northern parts of the country. He informed the delegation that Pakistan was in negotiations with Chinese Companies, for construction of this pipeline and the 70 KM portion of the pipeline from Gawadar to Iran border would be completed by Pakistani companies. He hoped that this project would start in the near future. The Minister also stated that Pakistan wanted to increase bilateral trade and economic ties with Iran not only in Oil and gas sector including LPG petro chemicals and fertilizers but in other fields of the economy as well. Shahid Khaqan Abbasi mentioned that Pakistan’s annual oil imports bill was $ 15 billion but direct oil trade between Iran and Pakistan was negligible and said that we expected this trade to increase substationally after the sanction issue was closed.
On this occasion Dr. Ali Taieb Nia, Iranian Minister for Economic Affairs and Finance said that Iran has already completed its part of the Iran-Pakistan Gas Pipeline Projects and hoped that in near future Pakistan would also fulfill its commitment to complete its part of the project. He expressed his desire the Iranian gas should flow in to Pakistan soon so that Pakistan may be able to overcome its energy shortfall. The Iranian Minister informed that Iran’s negotiations with the international community on nuclear issue have been successful and hoped that the applicable sanctions will be removed very soon. He further expressed his hope that with the removal of international sanctions Iran’s trade volume and economic relations with its neighbors would further improve. He also said that Iran has great potential to export Petro-chemical products, electricity, and fertilizer and offered Pakistan to benefit from these opportunities available in its neighborhood.

By Daily Times

 

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