Iran says will not reduce gas exports price for Peace Pipeline
Iran's oil minister Rostam Qasemi said on Sunday that his country will not supply Pakistan with cheaper gas.
The Iran-Pakistan Gas Pipeline deal has been finalized and Tehran does not plan to give any discount to Islamabad, Mehr news agency quoted Qasemi as saying.
Qasemi went on to note that Pakistan has not submitted any formal request for price renegotiation.
Pakistan Prime Minister's Adviser on Petroleum Asim Hussain said on Saturday that Islamabad has requested Tehran to reduce gas price for Iran-Pakistan pipeline.
The request has been made under price renegotiation clause of the bilateral sales and purchase agreement (GSPA) to bring it at par with the rates finalized with Turkmenistan, ISNA news agency reported.
"Iran has to reduce gas prices and come down to Turkmenistan-Afghanistan-Pakistan-India pipeline (TAPI) rate," Hussain said.
An official has claimed that reducing the price of Iran's gas exports to that of TAPI pipeline level, would save Pakistan about $1.5 billion in the long term prospect.
Based on the agreement that was reached in Islamabad last week, Pakistan will pay back Iran's $500-million loan after Peace Pipeline's inauguration, Fars news agency reported.
The pipeline is projected to come on stream in 2014.
Iran and Pakistan have devised a plan to finance the gas pipeline on Pakistan's side without the need for Islamabad to transfer funds to Tehran.
Based on the agreement, Tehran will grant a $500-million loan to Tehran-based Tadbir Energy Development Group, which is responsible for laying a pipeline in Pakistan under the multi-billion-dollar project.
In the first phase, Iran will lend $250 million and extend the assistance later to $500 million.
Tadbir Energy Development group has agreed to complete the project in 15-16 months.
The Iran-Pakistan gas pipeline, projected to cost $1.2-1.5 billion, would enable the export of 21.5 million cubic meters of Iran's natural gas to Pakistan on a daily basis.
Iran has already constructed more than 900 kilometers of the pipeline on its soil.
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