Iran–Pakistan gas pipeline

Iran–Pakistan gas pipeline
Location of Iran–Pakistan gas pipeline Location of Iran–Pakistan gas pipeline
Location
Country	Iran, Pakistan
From	Asalouyeh
Passes through	Bandar-Abbas, Iranshahr, Khuzdar, Sui
To	Multan
General information
Type	natural gas
Partners	National Iranian Oil Company, Sui Northern Gas Pipelines Limited, Sui Southern Gas Company, Gazprom
Expected	2013
Technical information
Length	2,775 km (Bad rounding here mi)
Maximum discharge	40 billion cubic metres (1.4×10^12 cu ft) per year
Diameter	56 in ( mm)

The Iran–Pakistan gas pipeline, also known as the IP pipeline or the Peace pipeline,^{[citation needed]} is a partially constructed pipeline to deliver natural gas from Iran to Pakistan.

History

Inception

The idea was conceived by a young Pakistani civil engineer Malik Aftab Ahmed Khan in mid 1950s, when an article of his was published by the Military College of Engineering, Risalpur. The article Persian Pipeline also mentioned the method for its protection along the hostile territory by establishing mini battalion-size cantonments along its proposed route through Baluchistan/Sind. The project was conceptualized in 1989 by Rajendra K. Pachauri in partnership with Ali Shams Ardekani, former Deputy Foreign Minister of Iran. Pachauri proposed the plan to both Iranian and Indian governments in . The government of Iran responded positively to the proposal. At the 1990 annual conference of the International Association of Energy Economics, Ardekani backed Pachauri's proposal.

Timeline

Discussions between the governments of Iran and Pakistan started in 1994. A preliminary agreement was signed in 1995. This agreement foresaw construction of a pipeline from South Pars gas field to Karachi in Pakistan. Later Iran made a proposal to extend the pipeline from Pakistan into India. In February 1999, a preliminary agreement between Iran and India was signed.

In 2004 the project was revived after the UNDP's report Peace and Prosperity Gas Pipelines by Gulfaraz Ahmed was published in December 2003. The report highlighted benefits of the pipeline to Pakistan, India and Iran.^{[citation needed]}

In February 2007, India and Pakistan agreed to pay Iran US$4.93 per million British thermal units (US$4.67/GJ) but some details relating to price adjustment remained open to further negotiation.

In April 2008, Iran expressed interest in the People's Republic of China's participation in the project. In August 2010, Iran invited Bangladesh to join the project.

In 2009, India withdrew from the project over pricing and security issues, and after signing a civilian nuclear deal with the United States in 2008. However, in March 2010 India called on Pakistan and Iran for trilateral talks to be held in May 2010 in Tehran.

In January 2010, the United States asked Pakistan to abandon the pipeline project. If canceling the project, Pakistan would receive assistance from the United States for construction of a liquefied natural gas terminal and importing electricity from Tajikistan through Afghanistan's Wakhan Corridor. However, on 16 March 2010 in Ankara, Iran and Pakistan signed an agreement on the pipeline. According to the agreement each country must complete its section by 2014. In July 2011, Iran announced that it has completed construction of its section. If Pakistan does not fulfill its obligation to complete the pipeline on its side by the end of 2014, it will have to pay a daily penalty of $1 million to Iran until completion. On 13 March 2012 Pakistan's ministry of finance announced that private investors were showing diminished interest and that the government might have to impose a tax on consumers, or seek government-to-government arrangements with Iran, China and Russia to build the pipeline. On 29 March it was reported that officials from Pakistan’s petroleum ministry would travel to Russia in early April for talks with Gazprom. Then, in a 7 April article the Pakistani daily PakTribune reported that Gazprom would both finance and construct the pipeline. This would require setting aside the Public Procurement Regulatory Authority rules which require international bidding for such a large project. The Economic Coordination Committee would be asked in its next meeting to give such permission. The article also informed that the reason the private consortium no longer would contribute to the project was US opposition.

On 15 April 2012 it was reported through unnamed diplomatic sources in Islamabad that Saudi Arabia was offering to deliver an "alternative package" to Pakistan if the country abandoned its cooperation with Iran. In addition to oil the package would also include a cash loan and oil facility. The news came in connection with a visit to Pakistan by the Saudi deputy foreign minister.

On 1 May 2012 it was reported that Pakistan's foreign minister, Hina Rabbani Khar had said that Islamabad will not give in to US pressures to mothball the project and will finish the huge pipeline project "at any cost" and that the project was in line with the country's national interest.

Route

The length of the pipeline that will be supplied from the South Pars field has been given variously as 560 miles (900 km), 643 miles (1,035 km), and 2,775 kilometres (1,724 mi). It starts from Asalouyeh and stretches 1,172 kilometres (728 mi) through Iran. The Iran's section is known as Iran's 7th cross-country gas pipeline. First 902-kilometre (560 mi) part of this section runs from Asalouyeh to Iranshahr. The second 270-kilometre (170 mi) part runs from Iranshahr to Iran–Pakistan border.

In Pakistan, the pipeline will pass through Baluchistan and Sindh. In Khuzdar, a branch would spur-off to Karachi, while the main pipeline will continue towards Multan. From Multan, the pipeline may be expanded to Delhi. The route in Pakistan may be changed if China will participate in the project.

As there are concerns over the pipeline being attacked by Baluchi insurgents, an alternative offshore route from Iran to the maritime boundary between India and Pakistan off Kutch was proposed. According to this proposal, from there one branch to run to Pakistan while other branch to run to Kutch.

Technical description

The initial capacity of the pipeline was to be 22 billion cubic metres (780 billion cubic feet) of natural gas per year, which was expected to be raised later to 55 billion cubic metres (1.9 trillion cubic feet). However, as a bilateral project between Iran and Pakistan, the pipeline will carry only 8.7 billion cubic metres (310 billion cubic feet) of gas per year as contracted and 40 billion cubic metres (1.4 trillion cubic feet) as a maximum capacity. The pipeline has diameter of 56 inches (1,400 mm). It is expected to cost US$7.5 billion and to be commissioned by 2013.

The IP pipeline will deliver the gas to Pakistan at a price of $11 per MMBTU cheaper in comparison to TAPI which would deliver gas at $13 per MMBTU and importation of LNG which would cost $18 per MMBTU.

Companies

In different times several companies have been interested to build the pipeline. Companies included Gazprom, BHP Billiton, National Iranian Gas Company, Petronas, and Total S.A.. A consortium consisting of Royal Dutch Shell, BG Group, Petronas and an Iranian business group had negotiated on exporting of gas from South Pars to Pakistan. From India, GAIL had been involved. However, according to latest news, the pipeline's section in Iran was built by the National Iranian Gas Company and the section in Pakistan by a consortium of Sui Northern Gas Pipeline Limited, Sui Southern Gas Company Limited and Italian company Eni. The National Iranian Gas Company has subcontracted part of the construction project to Khatam al-Anbia for US$200-250 million.

See also

• Trans-Afghanistan Pipeline
• Iran–Pakistan relations
• List of power stations in Iran
• List of power stations in Pakistan
• Energy in Iran

External links

• Iran-Pakistan-India Pipeline: A View from Washington by Gal Luft, June 15, 2007.
• Iran-Pakistan pipeline: Iran’s new lifeline by Gal Luft, May 29, 2009.

fa:خط لوله صلح