Iran, Pakistan gass pipeline.............
 

The idea was conceived by a young Pakistani civil engineer Malik Aftab Ahmed Khan in mid 1950s, when an article of his was published by the Military College of Engineering, Risalpur. The project was conceptualized 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 1990 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. 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 signed b/w Iran and India. In February 2007, India and Pakistan agreed to pay Iran US$4.93 per million British thermal units (US$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. In January 2010, the United States asked Pakistan to abandon the pipeline project. If canceling the project, Pakistan would receive assistance from the United States for construction of a liquefied natural gas terminal and importing electricity from Tajikistan through Afghanistan's Wakhan Corridor. However, on 16 March 2010 in Ankara, Iran and Pakistan signed an agreement on the pipeline. According to the agreement each country must complete its section by 2014. In July 2011, Iran announced that it has completed construction of its section. If Pakistan does not fulfill its obligation to complete the pipeline on its side by the end of 2014, it will have to pay a daily penalty of $1 million to Iran until completion. On 13 March 2012 Pakistan's ministry of finance announced that private investors were showing diminished interest and that the government might have to impose a tax on consumers, or seek government-to-government arrangements with Iran, China and Russia to build the pipeline. On 29 March it was reported that officials from Pakistan’s petroleum ministry would travel to Russia in early April for talks with Gazprom. Then, in a 7 April article the Pakistani daily PakTribune reported that Gazprom would both finance and construct the pipeline. This would require setting aside the Public Procurement Regulatory Authority rules which require international bidding for such a large project. The Economic Coordination Committee would be asked in its next meeting to give such permission. The article also informed that the reason the private consortium no longer would contribute to the project was US opposition.

On 15 April 2012 it was reported through unnamed diplomatic sources in Islamabad that Saudi Arabia was offering to deliver an "alternative package" to Pakistan if the country abandoned its cooperation with Iran. In addition to oil the package would also include a cash loan and oil facility. The news came in connection with a visit to Pakistan by the Saudi deputy foreign minister.

On 1 May 2012 it was reported that Pakistan's foreign minister, Hina Rabbani Khar had said that Islamabad will not give in to US pressures to mothball the project and will finish the huge pipeline project "at any cost" and that the project was in line with the country's national interest.

Route

The length of the pipeline that will be supplied from the South Pars field has been given variously as 560 miles (900 km)
In Pakistan, the pipeline will pass through Baluchistan and Sindh. In Khuzdar, a branch would spur-off to Karachi, while the main pipeline will continue towards Multan. From Multan, the pipeline may be expanded to Delhi. The route in Pakistan may be changed if China will participate in the project.

As there are concerns over the pipeline being attacked by Baluchi insurgents, an alternative offshore route from Iran to the maritime boundary between India and Pakistan off Kutch was proposed. According to this proposal, from there one branch to run to Pakistan while other branch to run to Kutch.

Technical description

The initial capacity of the pipeline was to be 22 billion cubic metres (780 billion cubic feet) of natural gas per year, which was expected to be raised later to 55 billion cubic metres (1.9 trillion cubic feet). However, as a bilateral project between Iran and Pakistan, the pipeline will carry only 8.7 billion cubic metres (310 billion cubic feet) of gas per year as contracted and 40 billion cubic metres (1.4 trillion cubic feet) as a maximum capacity. The pipeline has diameter of 56 inches (1,400 mm). It is expected to cost US$7.5 billion and to be commissioned by 2013.

The IP pipeline will deliver the gas to Pakistan at a price of $11 per MMBTU cheaper in comparison to TAPI which would deliver gas at $13 per MMBTU and importation of LNG which would cost $18 per MMBTU.:thinking