Iran approves peace pipeline deal with Pakistan

Iran finalised a $7 billion "peace pipeline" deal on Sunday to export natural gas to Pakistan by 2015, Iran's state television reported.

Iran approves peace pipeline deal with Pakistan

Iran finalised a $7 billion "peace pipeline" deal on Sunday to export natural gas to Pakistan by 2015, Iran's state television reported.

"The deal was signed. Export of Iran's gas to Pakistan will be launched by the end of 2015," state TV reported.

"For 25 years Iran will export one million cubic metres of natural gas to Pakistan per day," it said.

The project is crucial for Pakistan to avert a growing energy crisis already causing severe electricity shortages in the country of about 170 million, at the same time as it confronts Islamist militancy.

Iran has the world's second largest gas reserves after Russia but has struggled for years to develop its oil and gas resources. Iranian officials say the country needs $25 billion to develop its crucial energy industry.

The pipeline will connect Iran's giant South Fars gas field with Pakistan's southern Baluchistan and Sindh provinces.

State television said the pipeline was 1,000 km (620 miles) long, with about 907 km of it already built.

Under a deal signed in March, Pakistan will be allowed to charge a transit fee if the proposed pipeline is eventually extended to India.

Reuters

Last Mod: 13 Haziran 2010, 12:48
Add Comment