Pars Oil & Gas Company announces extension of IP pipeline starting in 30 days

Monday, Dec 24, 2012

Managing director of National Iranian Gas Company (NIGC) says construction of continuation of Iran-Pakistan gas pipeline in the neighboring country’s territory would start in next 30 days.

Speaking on the sidelines of a ceremony on memorandum of oil industry martyrs, Javad Oji said: Under a direction by Iranian president, Iran’s private sector companies have started their activities in Pakistan and Iranian banks will provide financial resources for construction of the pipeline.

Sometimes ago, Islamabad had asked Iran to participate in construction of Pakistani part of the pipeline.

Iran has expressed its readiness for granting a 250 million dollar loan to the neighboring country as well as providing equipment.

There is also a suggestion that Iran will allocate a 500 million dollar credit to the project and the remaining financial needs will be met by collecting taxes from gas consumers in Pakistan.

In addition, it is planned Iranian and Pakistani companies form a joint venture for completion of the pipeline inside Pakistan territory.

Under a contract between the two countries, Iran is slated to export 21.5 million cubic meters of gas per day (7.8 billion cubic meters annually) to the neighboring country as of 2014.

While Iran should build 300 kilometers of remaining part of the pipeline to Pakistan border, the neighboring country should build 700 kilometers of the pipeline inside the country.

During his recent visit to Pakistan in November, Iranian president, Mahmoud Ahamdinejad, stressed on necessity of completion of the pipeline on schedule.

Source: Pars Oil & Gas Company

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