Iran offers Pakistan 80,000 barrels per day of crude

Special Assistant to Prime Minister on Petroleum, Dr Asim Hussain said on Tuesday that Iran has offered to provide 80,000 barrels per day of crude to Pakistan and $150 million assistance to lay pipeline between the two countries for transporting the fuel.
Talking to reporters after the meeting of the National Assembly Standing Committee on Petroleum, he said a Pakistani delegation will be visiting Iran next week to finalise the modalities. He said Iran has offered financing of $150 million for the oil pipeline which Pakistan wants to be enhanced to $500 million.
Iran, he said was ready to offer for three months deferred payment facility, but it should be forward looking as otherwise the disparity between rupee and dollar could hurt us. He said the petroleum ministry was discussing with the State Bank of Pakistan to fine tune the proposal that will be discussed with Iranian authorities in the upcoming talks. When asked whether Pakistan could import more crude from Iran, he said, it was not possible at present as the local refineries lacked capacity to handle more fuel supplies. However, he added the petroleum ministry was working on a new refining policy to increase refining capacity. He said incentives will be provided to attract more investment in the refining sector. The new policy will make it mandatory for the refineries to have at least one hydro cracker plant, he added.
In reply to a question on Iran Pakistan gas pipeline, he said tender documents for the construction of the pipeline on the Pakistani side will be issued next week. Pakistan he said will meet the deadline for the construction of the pipeline as the important project of route survey was going on as scheduled.
About LNG imports from Qatar, he said the head of terms from Doha has been received. Qatar, he said has indicated an initial price of $16 mm BTU which will be considered by the government and after due diligence, counter offer would be made. He said Qatar has agreed to provide 3.5 million tonnes of LNG for a 15 year period.
Qatar he said will be carrying out due diligence of the three private sector companies which have obtained construction licence from Pakistan and after inspection of their sites and terminals, it will decide on which terminals their ships will go. He said the government has already asked the private companies to get their due diligence done from Qatar.