ISLAMABAD: In a major development, Pakistan and Iran are set to thrash out a strategy to materialise the much-delayed Iran-Pakistan gas pipeline project during talks in Tehran on December 9, a senior official of the Ministry of Petroleum and Natural Resources said.
The development comes against the backdrop of a shock deal signed between the P5+1 and Iran in Geneva on November 24. According to the accord, Iran will get some relief on those sanctions which were levied by the West in order to slow down its nuclear programme. Further, Pakistan is most likely to renegotiate with Iran on extending the deadline of the project and a of downward revision in gas prices. Iran recently expressed its willingness to review the gas price for the project, as required under the bilateral gas sale and purchase agreement (GSPA).
“We want revision of implementation schedule as more than six months have been wasted because of the political transition taking place in both countries and uncertainties over the impact of US sanctions on the pipeline project.” Under the agreement, the first gas delivery to Pakistan should start by December 31 next year.
The two countries are responsible for completion of pipeline within their territories. Failure on part of a party entails penalties equivalent to the price of daily gas quantities.
The price of gas under the original agreement had been signed at about 78 percent of furnace oil.
INTERNEWS
