Pakistan, Iran sign gas pipeline agreements

Pakistan and Iran signed an intergovernmental declaration May 24 to support within the framework of their respective laws and regulations the gas deal between the countries' oil ministries.

May 27th, 2009

By an OGJ correspondent
KARACHI, May 27 -- Pakistan President Asif Ali Zardari and Iran President Mahmood Ahmadinejad signed an intergovernmental declaration May 24 to support within the framework of their respective laws and regulations the gas deal between the oil ministries of both countries.

Zardari is in Tehran for a three-way summit with Ahmadinejad and Afghanistan President Hamid Karzai.

A gas sale purchase agreement was signed earlier by managing directors of the National Iranian Oil Co. and the Pakistan Interstate Gas System, set up by the Pakistan government for the project.

The 2,100-km pipeline is to transfer Iranian gas to Pakistan. About 1,100 km of pipeline would be laid in Iran and 1,000 km in Pakistan. The project is to transfer about 750 MMcfd of gas. Construction of the pipeline is to be completed in 5 years.

Pakistan and Iran will sign the formal agreement for the multibillion dollar gas pipeline project in a third country within the next 15 days, according Asim Hussain, top energy adviser to Islamabad, capital of Pakistan, and Pakistan leader on the pipeline project.

UPI wire service reported Iran and Pakistan are set to sign formal agreements on the Iran-Pakistan-India pipeline by June. In that deal, it said, Pakistan would take 2.6 bcfd from Iran's South Pars gas field over the next 25 years.

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