Pakistan Looks to Renegotiate Iran Gas Deal

Pakistan is looking to renegotiate its gas deal with Iran under the IP pipeline project.

According to The News, a local newspaper, oil ministry has sent a summary to Economic Coordination Committee (ECC), a principle federal institution and a consultative forum, seeking the approval of renewal of committee that will start talks with Tehran. The ministry is of the view that sale-purchase agreement signed earlier needs to be reviewed given the current low international gas prices.

“We will not abandon the deal with Iran at any cost. However, we want to review the price of gas and some other clauses mentioned in GSPA,” the top oil ministry official told The News.

The future of much delayed Iran-Pakistan (IP) gas pipeline remains uncertain as Pakistan has not been able to raise funds to complete the section of the pipeline would pass through its territory as the project still attracts some sanctions.

Iran has already built 900 km length of the pipeline on its territory while Pakistan still has to start work on the pipeline. Once the pipeline is operational, about 250 million cubic feet gas would be imported from Iran during first year, while in the second year the import of gas would be enhanced to 500 million cubic feet while in the third year 750 million cubic feet gas would be imported.

Islamabad is reportedly seeking Chinese help and is expected to take a formal decision soon.