15 June 2010
Islamabad -- A senior Pakistani economist Dr. Ashfaq Hasan Khan here Monday hailed signing of $7.5 billion "peace pipeline" deal between Iran and Pakistan to export natural gas to Pakistan by 2014. Talking to IRNA, Director General, Business School of National University of Sciences and Technology Dr. Ashfaq termed the deal as a landmark agreement.
Iran and Pakistan have formally signed an export deal, which stipulates that Iran would begin supplying natural gas to Pakistan from 2014.
The agreement was signed in Tehran by Iran's Deputy Oil Minister Javad Owuji and a Pakistani delegation that included the Secretary for the Ministry of Petroleum and Natural Resources Kamran Lashari and the Managing Director of the Inter-State Gas Company Naeem Sharafat.
The Secretary for the Ministry Kamran Lashari, has said that Islamabad would conduct a one-year feasibility study for building its section of the pipeline. It will then "take three years to construct the 700-kilometer pipeline" from the Iranian border to Pakistani city of Nawabshah, he added.
Dr. Ashfaq Hasan Khan expressing his views said that the deal is much delayed as it should have been signed much earlier.
"The project is crucial for Pakistan to avert the global growing energy crisis, already causing severe electricity shortages in the country", he said.
The economist said that the signing of the deal comes at a right time for Pakistan. He added that the demand and supply of energy is growing rapidly in Pakistan and the inflow of gas would start from Iran when Pakistan needs it.
Dr. Ashfaq Hasan Khan said that the project would also help to stabilize the ailing economy of Pakistan. "We need gas for the power sector", he noted.
He said that it is not possible to say that the project would be completed by 2014. "But we are hopeful that because of its importance the project would be finalized in the stipulated time", he stated.
The economist suggested forming a progress evaluation monitoring committee for the gas pipeline project.
"The committee comprising of the members from both sides should hold meeting after every six months to evaluate progress of the project", he viewed.
Dr. Ashfaq Hasan Khan said the gas pipeline project was proposed hoping that it will support both Pakistan and India who lack adequate natural gas to meet their rapidly booming domestic demand for energy.
"Though right now India is not part of the project but after some time India, as well as China will join the project", he hoped.
He stated that the project would also brig economic activity in Iran adding every country in the region would get benefit from the project.
Replying to a question regarding any external pressure on Pakistan in connection with the project Ashfaq Hasan Khan said the deal would have not signed if there was any pressure on Pakistan.
"It is our right to purchase gas to avert the energy crises and I believe there is absolutely no pressure on Pakistan to cancel the deal", he said.
The pipeline will connect Iran's giant South Fars gas field with Pakistan's Balochistan and Sindh provinces.
The volume of imported gas will be about 20 percent of Pakistan's current gas production, and the agreement is for a period of 25 years, renewable for another five years.
Under the gas sale and purchase agreement (GSPA), Pakistan will import about 750 million cubic feet a day (mcfd) with provision to increase it to one billion cubic feet a day (bcfd).
Islamabad -- A senior Pakistani economist Dr. Ashfaq Hasan Khan here Monday hailed signing of $7.5 billion "peace pipeline" deal between Iran and Pakistan to export natural gas to Pakistan by 2014. Talking to IRNA, Director General, Business School of National University of Sciences and Technology Dr. Ashfaq termed the deal as a landmark agreement.
Iran and Pakistan have formally signed an export deal, which stipulates that Iran would begin supplying natural gas to Pakistan from 2014.
The agreement was signed in Tehran by Iran's Deputy Oil Minister Javad Owuji and a Pakistani delegation that included the Secretary for the Ministry of Petroleum and Natural Resources Kamran Lashari and the Managing Director of the Inter-State Gas Company Naeem Sharafat.
The Secretary for the Ministry Kamran Lashari, has said that Islamabad would conduct a one-year feasibility study for building its section of the pipeline. It will then "take three years to construct the 700-kilometer pipeline" from the Iranian border to Pakistani city of Nawabshah, he added.
Dr. Ashfaq Hasan Khan expressing his views said that the deal is much delayed as it should have been signed much earlier.
"The project is crucial for Pakistan to avert the global growing energy crisis, already causing severe electricity shortages in the country", he said.
The economist said that the signing of the deal comes at a right time for Pakistan. He added that the demand and supply of energy is growing rapidly in Pakistan and the inflow of gas would start from Iran when Pakistan needs it.
Dr. Ashfaq Hasan Khan said that the project would also help to stabilize the ailing economy of Pakistan. "We need gas for the power sector", he noted.
He said that it is not possible to say that the project would be completed by 2014. "But we are hopeful that because of its importance the project would be finalized in the stipulated time", he stated.
The economist suggested forming a progress evaluation monitoring committee for the gas pipeline project.
"The committee comprising of the members from both sides should hold meeting after every six months to evaluate progress of the project", he viewed.
Dr. Ashfaq Hasan Khan said the gas pipeline project was proposed hoping that it will support both Pakistan and India who lack adequate natural gas to meet their rapidly booming domestic demand for energy.
"Though right now India is not part of the project but after some time India, as well as China will join the project", he hoped.
He stated that the project would also brig economic activity in Iran adding every country in the region would get benefit from the project.
Replying to a question regarding any external pressure on Pakistan in connection with the project Ashfaq Hasan Khan said the deal would have not signed if there was any pressure on Pakistan.
"It is our right to purchase gas to avert the energy crises and I believe there is absolutely no pressure on Pakistan to cancel the deal", he said.
The pipeline will connect Iran's giant South Fars gas field with Pakistan's Balochistan and Sindh provinces.
The volume of imported gas will be about 20 percent of Pakistan's current gas production, and the agreement is for a period of 25 years, renewable for another five years.
Under the gas sale and purchase agreement (GSPA), Pakistan will import about 750 million cubic feet a day (mcfd) with provision to increase it to one billion cubic feet a day (bcfd).
© IRNA 2010
