Iranian company starts construction of Pakistan's section of gas pipeline
Iranian Tadbir Energy company has started construction works on
the Iran-Pakistan gas pipeline (IP), Fars news agency reported.
The cost of construction of the pipeline from Gabd-zero point, on
Pakistan-Iran border, to Nawabshah for the delivery of 750 million
cubic feet of gas per day has been tentatively agreed upon at $1.5
billion but Iran has been asked to reduce the per kilometre
construction cost.
Iranian Oil Minister Rostam Qasemi arrived in Pakistan on Tuesday
to discuss the Iran-Pakistan gas pipeline with the country's
officials.
Qasemi is heading a 9-member high ranking delegation, which conveys
a special message from Iranian President Mahmoud Ahmadinejad
regarding the IP gas pipeline project.
Pakistan and Iran are forging ahead with the project despite
opposition from the US, which has imposed sanctions on Tehran for
its alleged nuclear program.
Adviser to Pakistani Prime Minister on Petroleum and Natural
Resources Asim Hussain said earlier that the Iranian company will
complete the process of constructing the pipeline in 15 months,
according to Pakistan Tribune.
Frontier Works Organisation (FWO), Sui Southern Gas Company (SSGC)
and Sui Northern Gas Pipelines Limited (SNGPL) will also take part
in the construction work.
Sources said Pakistan and Iran had finalised per kilometre cost of
laying the pipeline, which will be of 42 inches and spread over 781
km, as well as markup on loan being provided by Tehran.
The per kilometre cost will be Rs190 million and markup on $500
million loan will be 3 percent per annum. "Iran had demanded 4
percent interest on loan," a source said.
The financing will be for 20 years with a five-year grace
period.
Iranian President Mahmoud Ahmadinejad during his trip to Pakistan
on November 22 emphasized the need to complete the Iran-Pakistan
gas pipeline according to schedule.
The Iran-Pakistan gas pipeline, projected to cost $1.2-1.5 billion,
is aimed to export a daily amount of 21.5 million cubic meters of
Iranian natural gas to Pakistan.
Iran has already constructed more than 900 kilometers of the
pipeline on its soil.
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