3 scenarios for gas exports to Pakistan

TEHRAN, Jan. 28 (MNA) – Deputy oil minister, while describing three scenarios for gas exports to Pakistan, said termination of the gas sale deal to the neighboring country is a possible option on the table.

On Iran’s plan to export natural gas to Pakistan in time with sanctions removal, Hamidreza Araghi said following dissolution of the National Iranian Gas Export Company (NIGEC), all records and information pertaining to sale of natural gas through pipeline, including contracts with Pakistan, Georgia and Azerbaijan, were transferred to the National Iranian Gas Company (NIGC).

NIGC managing director underlined that no contact had been made with Pakistani officials over resumption of gas exports to the neighboring country asserting “Pakistanis will be contacted as soon as possible for launch of negotiations.”

In response to the question if Iran was after terminating that gas export deal with Pakistanis in view of their frequent breaches of promise, the official said three scenarios had been put on the agenda as regards gas sales to Islamabad.

Araghi said the first option was to tolerate present conditions and accepting the status quo; “the second scenario is to terminate the contract with Pakistan though no decision has been made in this regard so far,” he stated.

He deemed dialogue as the third possible scenario adding “serious negotiations need to be put on agenda until all existing issues with the agreement are resolved.”

Federal Minister for Oil and Petroleum in Pakistan Shahid Khaqan Abbasi recently told Pakistani media that his government has asked Iranian officials to apply amendments to the Gas Sales Purchase Agreement (GSPA) adding “on the basis of GSPA, gas prices have been set at 12 dollars per MMBTU (one million British Thermal Units) while crude oil is being traded at 100 dollars per barrel in global markets.”

Concurrent with continuance of indeterminate state of Pakistan’s government in construction of the pipeline for gas imports from Iran, some experts of both sides report on possibility for suspending the huge contract though Iran’s Ministry of Petroleum has not confirmed the issue yet.

In the meantime, Iran has so far held back from taking legal action against Pakistan for its delay in fulfilling commitments while the envisaged deadline for the contract coincided with the end of 2014 and no official action has been taken on its extension.

Almost two years ago, Iranian Oil Minister Bijan Zanganeh said Iran deemed no barriers on gas exports to Pakistan since a valid contract existed between the two countries though the Pakistani side committed a breach of promise by refusing to recover Iran’s gas.

Zanganeh said Pakistanis, during several talks with the Iranian Ministry of Petroleum emphasized that pipeline construction would be carried out as soon as financial issues were resolved; “the neighboring country is willing to cooperate and has asked Iran not penalize them.”


News Code 123070


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    • Yusuf Iddris Banda 04:15 - 2017/01/29
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      I wish to express my condolence to the iranian nation for the tragic accident and lost of life. May their souls be in paradise