Pakistan to negotiate wit Iran over gas price

Pakistan to negotiate wit Iran over gas price

Federal Minister for Petroleum, Dr Asim Hussain has said that Pakistan will hold another meeting with Iran to re-negotiate the gas price on IP gas pipeline deal. Talking to media on November 14, the minister said that the negotiations will save handsome money
for Pakistan in next 25 years. According to details Pakistan has decided to undergo another phase of talks with Iran in light of price mechanism settled over Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project.

Giving the details of fresh decision of re-negotiating with Iran on gas price, the minister said that, “Pakistan will save $100 billion during the period of next 25 years due to two gas pipeline projects Iran-Pakistan (IP) and TAPI. The contract of IP gas pipeline
has the provision to re-negotiate the gas price if Pakistan is able to get alternative source of supply at cheaper rate.”

He also said that, “During current month gas shortfall is expected to be 529 million cubic feet per day (MMCFD), in December 911, January 1,127, February 1,046 and 762 mmcfd in March next year. That is why the government has decided to review the gas shortage
on a monthly basis,”

Responding to question regarding the normalising of supply and demand of gas Dr Asim said that the situation is expected to be settled down until 2013. He also cautioned the mass to remain mentally prepared for gas load shedding in the winter. Pakistan is facing
the great shortage of gas for industrial and transportation sector and the concerned class is not at good terms with government on the issue.

Talking about the current status of gas shortfall the he said that, “During current month gas shortfall is expected to be 529 million cubic feet per day (MMCFD), in December 911, January 1,127, February 1,046 and 762 mmcfd in March next year. That is why the
government has decided to review the gas shortage on a monthly basis.”

Meanwhile, Russia has shown great interest to lay the proposed gas pipeline in Pakistan. The project is scheduled to be started in 2013 and will be completing on December 31, 2014.

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Posted by Shahid Nazir on Nov 14 2011. Filed under Latest News, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry