(IRNA)
Published Date: Oct 24, 2013
Pakistan Think-Tank Questions IP Pipeline Benefits
The
Iran-Pakistan (IP) gas pipeline project under the existing gas sale and
purchase agreement (GSPA) would not serve Pakistan, the country’s
Sustainable Development Policy Institute (SDPI) said in a report
released today.
Iran-Pakistan (IP) gas pipeline project under the existing gas sale and
purchase agreement (GSPA) would not serve Pakistan, the country’s
Sustainable Development Policy Institute (SDPI) said in a report
released today.
The report
entitled, "Rethinking Pakistan’s Energy Equation: Iran-Pakistan Gas
Pipeline," by Pakistan’s leading think-tank said this project can be
beneficial if the gas price agreement would be based on fixed rate.
entitled, "Rethinking Pakistan’s Energy Equation: Iran-Pakistan Gas
Pipeline," by Pakistan’s leading think-tank said this project can be
beneficial if the gas price agreement would be based on fixed rate.
"It will be a
death sentence for Pakistan’s economy if the gas is imported from Iran
under IP gas pipeline project under the existing gas sales price – which
is linked with the Japan Crude Cocktail price," the report said. (The
News, 24 October)
death sentence for Pakistan’s economy if the gas is imported from Iran
under IP gas pipeline project under the existing gas sales price – which
is linked with the Japan Crude Cocktail price," the report said. (The
News, 24 October)
The report
argues that Iran is importing gas from Turkmenistan at the flat rate of
$4/MMBtu with no linkage to crude oil prices. It adds that Iran would
start exporting gas to Pakistan at $14/MMBtu, with the price subject to
periodic revisions based on market conditions.
argues that Iran is importing gas from Turkmenistan at the flat rate of
$4/MMBtu with no linkage to crude oil prices. It adds that Iran would
start exporting gas to Pakistan at $14/MMBtu, with the price subject to
periodic revisions based on market conditions.
The agreement
between Iran and Pakistan stipulates construction of Pakistan’s side of
the pipeline by December 2014. If the Pakistani government is serious
about this project, it must renegotiate the price, SDPI recommends. The
publication of the report is the first sign of a problem in
implementation of the IP project under the new Nawaz Sharif government.
The agreement was negotiated during Zardari administration.
between Iran and Pakistan stipulates construction of Pakistan’s side of
the pipeline by December 2014. If the Pakistani government is serious
about this project, it must renegotiate the price, SDPI recommends. The
publication of the report is the first sign of a problem in
implementation of the IP project under the new Nawaz Sharif government.
The agreement was negotiated during Zardari administration.