Defying US threats of sanctions, Russia has offered to build Pakistan-Iran gas pipeline to help Pakistan overcome energy crisis.

Islamabad, Sept 19/Nationalturk – In a significant political development in South Asia, Russia has defied US threats of sanctions and offered to build Pakistan-Iran gas pipeline to help Pakistan overcome energy crisis.

Russian Deputy Minister for Energy Yury Sentyurin lead a Russian delegation for talks with Pakistan on energy crisis. He met Pakistan Petroleum and Natural Resources minister Shahid Khaqan Abbasi in Islamabad on Wednesday.

“During the meeting, Russian minister expressed his country’s willingness to build Iran-Pakistan gas pipeline. This will be done in view of new Russian policy to look towards South Asia. Gazprom, a state-owned Russian company or one of its subsidiaries will soon make a formal contact with Pakistan government to execute the Pak-Iran gas pipeline project,” Pakistan newspaper The News quoted sources as saying.

They said this could prove to be a good news for Pakistan, which is confronting worst energy crisis. Most citizens of Pakistan have to bear 10-15 hours power load shedding.

Russia has not had a friendly relationship with Pakistan, which was close to US. However, Russia is now trying to move closer to Pakistan and develop a friendly relationship with the country.

US opposing gas pipeline project

United States has been opposing Iran-Pakistan gas pipeline project. US has been pressing Pakistan to shelve the project and rather focus on the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline.  However, in view of turmoil, conflict and militancy in Afghanistan, Pakistan is not interested in TAPI gas pipeline project.

Washington has repeatedly warned that in case Pakistan does not abandon the multibillion dollar project, US will impose economic sanctions against the country.

On March 11 this year, defying US pressure and opposition, Iran’s then President Mahmoud Ahmadinejad and his Pakistani counterpart Asif Ali had Zardari inaugurated the final construction phase of the gas pipeline.

Under the project, Pakistan will import 750 million cubic feet of gas per day (mmcfd) with an option to increase it to one billion cubic feet.

Pakistan, Iran to complete project by mid-2014

Pakistan and Iran have already agreed to complete the pipeline by mid-2014.

Iran said in July last year that it has completed construction of its nearly 1,172-kilometer section of the 2,775- kilometer pipeline. Under the agreement, Pakistan will import 21.5 million cubic meters of Iranian gas daily. The project has been lingering on since 1995 and the two countries finalized the 7.6-billion-US-dollar project in mid-2010. The project is crucial for Pakistan to avert a growing energy crisis which results in severe electricity shortages in the country.

Under the gas sales and purchase agreement between the two sides, the pipeline has to start delivering gas by Dec 2014 under take or pay clause which means the party failing to meet its commitments has to pay about $30m per month.

According to the project proposal, the pipeline will begin from Iran’s Assalouyeh Energy Zone in the south and stretch over 1,100 km through Iran. In Pakistan, it will pass through Baluchistan and Sindh but officials now say the route may be changed if China agrees to the project.

The multi-billion-dollar pipeline is designed to help Pakistan overcome its growing energy needs and 2700 km long pipeline was originally intended to supply gas for Pakistan and India, but India withdrew from the project.

Pakistan’s petroleum minister to visit Iran soon

Pakistan’s Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi is likely to visit Iran soon to discuss Iran-Pakistan gas pipeline project.

“Abbasi will soon Tehran in the coming days to discuss Iran-Pakistan gas pipeline project,” said Sartaj Aziz, Adviser to Pakistan Prime Minister on National Security and Foreign Affairs.

He said Islamabad will pursue the project and has informed the US of its energy requirements.

Earlier, last month Pakistan’s petroleum minister had said Iran-Pakistan gas project would be completed in the stipulated time.

“Pakistan was determined to continue the implementation of the IP gas pipeline project,” he had said.

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Faiz Ahmad / NationalTurk Pakistan News

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