Pakistan to Ask Iran to Reduce Gas Price

Pakistan’s Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi on Thursday said that his government will ask Iran to reduce the price of gas under the Iran-Pakistan gas pipeline project.

According to Business Recorder, the decision to ask for a reduction in price is driven by the fact that gas imported to Pakistan would cost $12 per Million British Thermal Unit (MMBTU) as compared to local gas price of $4.5 per MMBTU.

The minister said that 400 MMCFD of LNG import would begin by November 1, 2014 and within next three years country's LNG import will soar to 2BCFD mark.

On March 11, Iran and Pakistani inaugurated the final construction phase of the Iran-Pakistan gas pipeline, intended to carry natural gas from Iran to its eastern neighbour. The pipeline is expected to cost $1.8 billion and will carry 750 million cubic feet of natural gas a day to Pakistan for 25 years.

Iran has already constructed more than 900 kilometers of the pipeline on its soil.

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