Iran, Pakistan secure $7.5 billion gas pipeline deal
17 Mar 2010
Islamabad: Pakistan and Iran signed agreements Tuesday for the construction of a much-delayed natural gas pipeline, officials say. The deal was signed between the two countries in Turkey. India, too, was part of the project but a number of pressing reasons, mostly geo-political, have ensured that the project has now become a bilateral affair between Iran and Pakistan.
The $7.6 billion project will do much to alleviate energy shortages in Pakistan. Pakistan produces just 80 per cent of its overall electricity needs.
On the occasion Pakistani federal minister for petroleum and natural resources, Naveed Qamar, said the heads of agreement (HOA) and operational agreement (OA) signed in Turkey on Tuesday was a "historic achievement and a milestone towards meeting the energy needs of the country".
He expressed hope that "physical work will start soon enabling the gas into the system by the timeline".
The pipeline will connect Iran's South Pars gas field with Pakistan's Balochistan and Sindh provinces, which borders India. Each country will be responsible for building the section of pipeline that runs through its own territory.
