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This is an archive article published on June 6, 2009

Pak,Iran formalise gas pipeline project

Pakistan and Iran have formally signed an agreement to activate a bilateral gas pipeline project.

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Pakistan and Iran have formally signed an agreement to activate a bilateral gas pipeline project.

The Iranian National Oil Company INOC and the Pakistan Interstate Gas Company PIGC signed the agreement late on Friday,Geo News reported.

PIGC MD Hassan Nawab was quoted as saying that the agreement would be governed through a third country law that is why it was signed in Turkey.

The pipeline project would be completed by 2013,he added.

Pakistan will receive 750 cubic million gas on a daily basis,which will generate 4000 megawatts of electricity.

The gas pipeline will begin from Gawadar near Iranian border having 800 kilometer length. The determination of gas price will be linked with contemporary oil prices at international market but will be less than 25 per cent as compared to crude oil prices, Nawab said.

The estimated cost of the project is 1.2 billion dollars.

 

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