Iran Cancels Pakistan Gas Pipeline Loan

[BangersAndMash]

Iran has canceled a planned $500 million loan to Pakistan to build part of a pipeline to bring natural gas from the Islamic Republic.

Deputy Oil Minister Ali Majedi said Iran has no obligation to finance the Pakistani side of the project and also doesn't have the money.

Iran has already invested over $2 billion to construct the Iranian side of the pipeline. But there are serious doubts about how Pakistan could finance the $2 billion needed to construct the pipeline on its territory. Iran's former president Mahmoud Ahmadinejad had pledged the loan.

Pakistan has welcomed an Iranian offer to approach third parties, including European companies, to finance the project.

"Pakistani officials were told in recent talks that, given the sanctions, Iran is not able to finance construction of the pipeline (in Pakistan) and has no obligation to do so," he said. His comments were posted on the oil ministry's website, shana.ir, Saturday.

Majedi complained that Pakistan has done little to construct its own section of the project. Under a valid contract, Pakistan is required to finish construction of the pipeline on its territory by the end of 2014.

"If a contractor is chosen today and pipeline construction begins today, it will take four years to complete it. Should Pakistan fail to take gas by the end of next year, Iran will demand compensation under the terms of the contract," he said.

The Iran-Pakistan pipeline is designed to help Pakistan overcome its mushrooming energy needs. Pakistanis experience frequent blackouts.

The U.S. has opposed the project but leaders of both Iran and Pakistan have vowed to implement what they refer to as the "peace pipeline."

Iran Cancels Pakistan Gas Pipeline Loan - ABC News

 

[ninja85]

Iran has canceled a planned $500 million loan to Pakistan to build part of a pipeline to bring natural gas from the Islamic Republic.

Deputy Oil Minister Ali Majedi said Iran has no obligation to finance the Pakistani side of the project and also doesn't have the money.

Iran has already invested over $2 billion to construct the Iranian side of the pipeline. But there are serious doubts about how Pakistan could finance the $2 billion needed to construct the pipeline on its territory. Iran's former president Mahmoud Ahmadinejad had pledged the loan.

Pakistan has welcomed an Iranian offer to approach third parties, including European companies, to finance the project.

"Pakistani officials were told in recent talks that, given the sanctions, Iran is not able to finance construction of the pipeline (in Pakistan) and has no obligation to do so," he said. His comments were posted on the oil ministry's website, shana.ir, Saturday.

Majedi complained that Pakistan has done little to construct its own section of the project. Under a valid contract, Pakistan is required to finish construction of the pipeline on its territory by the end of 2014.

"If a contractor is chosen today and pipeline construction begins today, it will take four years to complete it. Should Pakistan fail to take gas by the end of next year, Iran will demand compensation under the terms of the contract," he said.

The Iran-Pakistan pipeline is designed to help Pakistan overcome its mushrooming energy needs. Pakistanis experience frequent blackouts.

The U.S. has opposed the project but leaders of both Iran and Pakistan have vowed to implement what they refer to as the "peace pipeline."

Iran Cancels Pakistan Gas Pipeline Loan - ABC News

pakibeggars even begs to iran (which is already under various sanctions) for money.

 

[Blackwater]

pakis have nothing to lose.

they were loser before and loser now.

Quote Jo free me mil gaya use muqadar samaj liya, nahi mila to sade pale pahle ki siga ,,ta ki kuch rehna unqoute pakis

 

[Blackwater]

pakibeggars even begs to iran (which is already under various sanctions) for money.

time is near when pakis will beg for $$$ to Somalia or sierra Leon

 

[tramp]

This is a very plausible move.

Iran is focusing on exporting natural gas to India along a deep-sea route — the move coinciding with the cancellation of a loan to Islamabad to build the Pakistani section of the Iran-Pakistan gas pipeline and the signing of the Geneva nuclear accord that could help relax sanctions against Tehran.

"Negotiations were held with three Indian companies for [their] purchase of gas from Iran, and general agreements have been reached," said Ali Amirani, director of marketing at the National Iranian Gas Exports Company (NIGEC), as quoted by the Tasnim news agency.

He added that India's South Asia Gas Enterprise Pvt. Ltd. (SAGE) had conducted feasibility studies for the multi-billion-dollar undersea pipeline, which could carry gas from Iran's giant South Pars gas field to India's west coast. Mr. Amirani said the project cost estimated by the company was $4-5 billion. Once operational, it could channel 31 million cubic meters of gas per day.

"We are in regular touch with the Iranians and at this moment they are the only country, among energy rich nations of the Persian Gulf, which has the surplus gas to export to India," said Subodh Kumar Jain, Director SAGE, in a telephonic conversation with The Hindu. He added that there were no technical hurdles to build the deep sea pipeline, and the project, which was financially viable, could be completed in 4-5 years, once the sanctions against Iran are lifted. "There could be several options but one of them could be bringing Iranian gas to the port of Chabahar from where it could either be transferred directly along the seabed or via Oman, which could also become a beneficiary".

Iran's interest in the India-centric project coincides with the cancellation of its $500-million loan to Pakistan to build part of a pipeline to funnel natural gas. Iran's deputy Oil Minister Ali Majedi said cash-strapped Iran was not obliged to finance the Pakistani side of the project.

In boosting exports, the Iranians have identified countries which could be linked with cost-effective pipelines to receive gas, and others which will have to depend on LNG tankers. "The Indian Subcontinent, Turkey and Europe are good markets for pipeline gas exports from Iran and the next step will be exporting cargoes of LNG for countries located farther," said Iran's Oil Minister Bijan Namdar Zanganeh. He added that Iran had a solid opportunity to strengthen exports as no other country in the Persian Gulf, except Qatar had any surplus to sell gas abroad.

Iran backs deep-sea gas pipeline to India - The Hindu

 

[BangersAndMash]

This is a very plausible move.



Iran backs deep-sea gas pipeline to India - The Hindu

The cost is pocket change for India. You might find the following link interesting!

World's Longest Under Water Gas Pipeline, 1166km "Giant Serpent" - Industry Tap

 

[cobra commando]

:dafuq: This country (Bakistan) doesn't even have the required money needed to construct the pipeline on its own territory, and brags about nuking India ?!?