Iran’s Pars Oil and Gas Company has begun negotiations on the construction of an Iran-Pakistan gas pipeline in Islamabad.
According to Shana, the first round of gas talks between the Iranian minister of petroleum Rostam Qasemi and Asem Hosani, advisor to the Pakistan PM on energy and natural resources.
Heading an 8 member delegation, the Iranian minister of petroleum arrived in Islamabad yesterday.
The negotiation was focused on extending a 500 million dollar credit by Iran for construction of an IP gas line in Pakistan’s territory with Pakistan providing the remainder of the costs.
The two sides have already agreed to form a joint venture for construction of the pipeline in Pakistan territory.
Under a gas contract between the two countries, Islamic Republic of Iran will start delivery of 21.5 million cubic meters of gas per day (7.8 billion dollars annually) as of 2014. Pakistan will lay down 700 kilometers of pipeline inside its territory while Iran is expected to expand its gas pipeline by 300 kilometers from Iranshahr city, southeast of the country, to Chabahar port, a point in the border with Pakistan.
