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Page added on November 24, 2013
Iran invites India, China to join gas pipeline
An Iranian deputy oil minister called on India to join an under-construction pipeline projected to carry natural gas from Iran to Pakistan.
Ali Majedi, who is a deputy minister for international and commercial affairs, said Iran expects India to overcome its doubts and join the pipeline, previously known as Peace Pipeline, reported FARS news agency. “If India joins the pipeline, the interests of all three countries – Pakistan, India and Iran – will be guaranteed,” he said.
“Given the initial design of the Peace Pipeline, even China can join this pipeline,” he said. Energy-thirsty India has already voiced its interest in the pipeline, but it has been dragging its heels on joining the project due to security concerns over the section of the pipeline cutting through Pakistan.
Majedi said Iran has met its obligations regarding gas exports to Pakistan, adding: “Iran has heavily invested in this pipeline project and has constructed its own section of the pipeline.”
“Pakistan is required to construct pipeline to take delivery of gas from Iran, but it has taken to serious action to that effect,” said Majedi. Initially, a 2,700-kilometer pipeline was planned to be constructed for Iran to pump 60 mcm/d of natural gas to Pakistan and 90 mcm/d to India.
India backed out of the project in 2007, citing security concerns on the Pakistani territory. After that, Iran and Pakistan decided to go it alone. Pakistan which struggles with gas shortage losing 2 billion dollars each year mainly because it has not yet decided how to meet its gas needs. Imports from Iran, construction of TAPI and LNG imports are the main options the country can resort to in order to meet its gas needs.
Iran is expected to start exporting gas to Pakistan in 2014.
2 Comments on "Iran invites India, China to join gas pipeline"
Others on Sun, 24th Nov 2013 10:37 pm
Its good, but they cannot sell gas at a prices linked to Oil.
Oil prices will keep increasing for ever.
BillT on Mon, 25th Nov 2013 1:15 am
As both China and India need the gas, I think it will happen. The finances of Pakistan will make it a necessity.
Others, oil will only go to a point where it cannot be sold, and then the amount of oil available will decline until nothing can be recovered at a profit. Americans cannot afford $150 oil because they waste most of it in non-productive ways. Countries that use $150 oil to make needed, affordable products will still buy it. $147 oil proved that point.