Islamabad Accelerates Work on Iran-Pakistan Gas Pipeline http://english.farsnews.com/newstext.php?nn=9001280513

Islamabad has intensified work on the multi-billion-dollar pipeline project which is due to bring Iran's gas to Pakistan, Pakistani media reports said on Sunday.   Work on Iran-Pak Gas Pipeline is quickly progressing and National Engineering Services Pakistan (Nespak) signed an agreement with a German Company to place the pipeline, the reports said. Speaking at a conference on "Challenges Faced by Industries in the country: Remedies and Future Prospects for Industrialization", Sui Southern Gas Company (SSGC) Managing Director Dr Faizullah Abbasi stated that approximately 1750mn cubic feet (mcf) of gas will be brought through this pipeline.

In a major breakthrough on March 20, 2009, the Pakistani government approved Iran's proposed pricing formula for gas supplies to the South Asian nation. Subsequently, Tehran and Islamabad signed a final agreement to launch implementation of the project. Tehran and Islamabad also sealed a final contract for the start of Iran's gas exports to Pakistan through the multi-billion-dollar pipeline in spring 2014.

The 2700-kilometer long pipeline was to supply gas for Pakistan and India which are suffering a lack of energy sources, but India has evaded talks. Last year Iran and Pakistan declared they would finalize the agreement bilaterally if India continued to be absent in the meetings. According to the project proposal, the pipeline will begin from Iran's Assalouyeh Energy Zone in the south and stretch over 1,100 km through Iran. In Pakistan, it will pass through Baluchistan and Sindh but officials now say the route may be changed if China agrees to the project. The gas will be supplied from the South Pars field. The initial capacity of the pipeline will be 22 billion cubic meters of natural gas per annum, which is expected to be later raised to 55 billion cubic meters. It is expected to cost $7.4 billion.