In order to overcome energy crisis in the country, Pakistan’s new government led by PML-N chief Nawaz Sharif has given go-ahead to Iran-Pakistan gas pipeline.

Islamabad, June 20/Nationalturk – Defying United States and other Western countries pressure, Pakistan’s new government led by PML-N chief Nawaz Sharif has given go-ahead to Iran-Pakistan gas pipeline to overcome energy crisis in the country,.

“Pakistan doesn’t want delay in completion of Iran-Pakistan gas pipeline project since the country needs the energy resources badly and urgently,” Pakistan’s Petroleum and Natural Resources Minister Shahid Khaquan Abbasi told Pakistani newspaper, The News.

He said study for construction of the pipeline’s section in Pakistan has been initiated. “It would be built by contractors, who will prove less expensive since divergent views exist among the experts concerned here about the cost of the pipeline. If the offer by Iran is cheaper, it would be favourably considered otherwise contractors will be engaged who will lay the pipeline at cheaper rates”.

Country responsible for delay will have to pay $3 million a day

According to agreement between Iran and Pakistan either of the two sides responsible for a delay would have to pay a heavy penalty to the other. “In no way is Pakistan delaying it,” the minister  said adding country responsible for the delay would be liable to pay US $3 million a day after December this year.

He revealed that Iran has offered to contribute US $10 million out of the total cost of US $15 million of the pipeline to be laid in Pakistan. “The amount offered by the Iranians would be in the shape of loan not as grant as generally perceived”.

Iran wants to construct a natural gas pipeline from the South Pars natural gas complex in the Persian Gulf across the border to Pakistan. Iran has completed construction work for laying of pipeline on its side. The project envisages the import of 750 million cubic feet of natural gas a day by Pakistan for 25 years. US government objects to the project because of the eventual economic benefits to Tehran.

‘Iran is already exporting gas to many countries’

Asked about objections and opposition from United States and other Western countries, Abbasi said he is surprised because the gas to be imported by Pakistan through Iran-Pakistan gas pipeline wouldn’t have any brand as ‘made in Iran’”.

“Iran is already exporting gas and other petroleum products to Turkey and Armenia but no country has objected to the supply. The supply in question also generates income for Iran just like in the case of project for Pakistan,” he said.

Stating that Pakistan won’t budge under any pressure to give up the project, Pakistan minister said, “I don’t see any reason for objecting and keep it in mind the agreement is between to sovereign states for the benefit of their people”.

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Faiz Ahmad / NationalTurk Pakistan News

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