Iran, Pakistan sign gas pipeline deal

TEHRAN, May 24 (MNA) -- Iranian President Mahmoud Ahmadinejad and his Pakistani counterpart Asif Ali Zardari inked an agreement in Tehran on Sunday finalizing the deal to transfer gas from Iran to Pakistan.

National Iranian Gas Export Company Managing Director Seyyed Reza Kasaiizadeh and Seyyed Hassan Nawab, the CEO of Pakistan’s Inter-State Gas Systems, put the finishing touches on the deal after two days of negotiations, the Fars News Agency reported. 

 

A Pakistani delegation headed by Pakistani Federal Minister of Petroleum and Natural Resources Asim Hussain arrived in Tehran on May 23 to work out the final details of the deal based on the new price formula suggested by Iran and approved by Pakistan’s cabinet on April 10.

 

According to the deal, Iran will initially transfer 30 million cubic meters of gas per day to Pakistan but will eventually increase the gas transfer to 60 million cubic meters per day.

 

The Iran-Pakistan-India gas pipeline project was conceptualized in 1990. Negotiations over the project were initiated in 1994 between the three countries but there were obstacles to closing the three-way deal due to tension between India and Pakistan, according to IRNA.

 

India has not participated in the last several rounds of talks, but Iran has encouraged India to rejoin the process.

 

The IPI gas pipeline is a proposed 2,775-kilometer pipeline to deliver natural gas from Iran to Pakistan and India.

 

The project is expected to greatly benefit India and Pakistan, which do not have sufficient natural gas to meet their rapidly increasing domestic demand for energy.

 

MF/MG/HG

END

MNA

News Code 33943

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