Iranian Petroleum Minister Rostam Qassemi has said that implementing Iran-Pakistan gas pipeline would lead to blossoming of the countries’ economy, greater security and higher living standards for Iranian and Pakistani border area residents.
Qassemi was speaking at the ground breaking of the Iran-Pakistan natural gas transfer pipeline at the border region zero point of Chabahar.
He reiterated, “Despite the sabotage efforts made by the enemies of the Iran and Pakistan this ultra-national project is nearing its final stages by grace of God and relying also on the strong will of the two countries’ statesmen.”
He noted, “It was a historical day that would not be forgotten by the Iranian and Pakistani nations,” adding, “Keeping in mind the establishment of a joint consortium among the Iranian and Pakistani companies we hope the implementation of this pipeline, too, would come sooner than scheduled.”
The petroleum minister pointed out that 85 percent of the world energy comprised of oil and gas and Iran was benefitting from these blessings. He said, “I hope with the completion of this giant project in addition to Pakistan that would be the rest of the regional nations, too, would be able to take advantage of this God-given energy by connecting their pipelines to it.”
The project was conceptualised in 1989 by Rajendra K Pachauri in partnership with Ali Shams Ardekani, former deputy foreign minister of Iran. Pachauri proposed the plan to both Iranian and Indian governments. The government of Iran responded positively to the proposal. At the 2012 annual conference of the International Association of Energy Economics, Ardekani backed Pachauri’s proposal.
Discussions between the governments of Iran and Pakistan started in 1994 and a preliminary agreement was signed in 1995. This agreement foresaw construction of a pipeline from South Pars gas field to Karachi in Pakistan. Later Iran made a proposal to extend the pipeline from Pakistan into India. In February 1999, a preliminary agreement between Iran and India was signed.
In 2004, the project was revived after the UNDP’s report Peace and Prosperity Gas Pipelines by Gulfaraz Ahmed was published in December 2003. The report highlighted benefits of the pipeline to Pakistan, India and Iran.
In February 2007, India and Pakistan agreed to pay Iran $4.93 per million British thermal units ($4.67/GJ) but some details relating to price adjustment remained open to further negotiation.
In April 2008, Iran expressed interest in the People’s Republic of China’s participation in the project. In August 2010, Iran invited Bangladesh to join the project.
In 2009, India withdrew from the project over pricing and security issues, and after signing a civilian nuclear deal with the United States in 2008. However, in March 2010 India called on Pakistan and Iran for trilateral talks to be held in May 2010 in Tehran.
On January 30, the Pakistani government approved a deal with Iran for laying the Pakistan’s segment of a pipeline. On February 27, the construction of the Pakistani section was inaugurated. According to Javad Owji, managing director of the National Iranian Gas Company, the pipeline in Pakistan was expected to be laid in 22 months with the participation of Iran.
On March 11, President Asif Zardari and Iranian President Mahmoud Ahmadinejad officially inaugurated the peace pipeline. The pipeline is complete on the Iranian side but the final part of the gas pipeline still needs to build on the Pakistani side. The gas pipeline is intended to help Pakistan meet its energy needs. Gas will be exported to Pakistan in 2014 after the pipeline is completed.
