Pak, Iran to sign gas pipeline deal in April
By Asad Cheema

ISLAMABAD—Iran, the world’s No. 2 holder of oil and gas reserves, will sign a final agreement to export gas via pipeline to Pakistan in April.
Iran has completed half of the pipeline, which will have a capacity to carry 110 million cubic metres of gas a day to Pakistan, Vahid Zeydifard, a senior pipelines expert at National Iranian Gas, said. Iran plans to start exporting gas to Pakistan from 2011, CNBC reported.
The US $7.4 billion project, known as the “Peace Pipeline,” will carry gas from Iran to Pakistan and India to meet the growing energy demand of the two countries.
“Negotiations are at a final stage,” Zeydifard said. “Pakistan needs 50 million cubic meters of gas a day, and we can supply the rest to India if they want it.” India currently uses about 108 million cubic metres of gas a day.
Iran is unable to commission gas export projects either via pipeline or in liquefied form because US sanctions are preventing international lenders and investors from releasing funds, Zeydifard said.
Pakistan is facing a shortage of gas as domestic fields decline and may have to depend on Iranian fuel to meet demand, which is expanding by 5 percent a year. Iran and Pakistan have agreed on the pricing formula for transporting natural gas through the proposed pipeline, the official Islamic Republic News Agency reported on Oct. 23.
The National Iranian Oil Co. is developing the Kish field, which will transport gas via a 900-kilometre pipeline from Assaluyeh to Iranshar once it is completed, said Zeydifard, whose company transports gas in Iran.
Pakistan can start receiving the gas when Iran completes a 400-kilometre section from Iranshar to the Pakistani border, Zeydifard said.
Iran halted gas exports to Turkey in January to meet soaring domestic demand due to extreme winter weather.``We have started exporting gas to Turkey again,’’ said Zeydifard.
``We had supply problems because of the cold weather and disruption of gas supplies from Turkmenistan.’’
Iran sells gas domestically at 20 cents a million British thermal units. The benchmark gas price at Henry Hub, Louisiana, a gas trading point, is $10 a million Btu.
Iran may increase exports of gas this year to Turkey by 30 percent to 10 billion cubic meters, Zeydifard said.
Iran will soon sign a final agreement to export gas via pipeline to Pakistan, reported Bloomberg.
Iran has completed half of the pipeline, which will have a capacity to carry 110 million cubic meters of gas a day to Pakistan.
Iran plans to start exporting gas to Pakistan from 2011 as part of a $7.4bn project known as the ‘Peace Pipeline’ that will carry gas from Iran to Pakistan and India, according to an Iranian official.