Energy-hungry Pakistan has signed a $7.5 billion deal with oil-rich Iran paving the way for laying the much-delayed natural gas pipeline that was originally envisaged to extend upto India.
The 900-kilometre pipeline is expected to mitigate the crippling energy crisis in Pakistan which has seriously hit the country's industry.
Pakistan's Petroleum and Natural Resources Minister Syed Naveed Qamar said in a statement that India is currently not part of the deal. However, he said the heads of agreement dealt with transporting gas meant for India through Pakistani territory if and when India decided to join the project.
The volume of 750mmcfd to 1 bcfd gas, expected to be in the system by the middle of 2015, will help overcome the shortage of gas in Pakistan. The 2,700-km pipeline was originally envisaged to transport Iranian gas to energy-deficient Pakistan and India.
However, India has not participated in talks on the venture since 2008. Pakistan and Iran declared last year that they would go ahead with the project bilaterally if India maintained its stance of not joining the venture.
Analysts said India stand was influenced by security concerns and the high transit fees being sought by Pakistan for gas to be transported through its territory.
Iran, Pakistan sign gas pipeline deal
The 900-kilometre pipeline is expected to mitigate the crippling energy crisis in Pakistan which has seriously hit the country's industry.
Pakistan's Petroleum and Natural Resources Minister Syed Naveed Qamar said in a statement that India is currently not part of the deal. However, he said the heads of agreement dealt with transporting gas meant for India through Pakistani territory if and when India decided to join the project.
The volume of 750mmcfd to 1 bcfd gas, expected to be in the system by the middle of 2015, will help overcome the shortage of gas in Pakistan. The 2,700-km pipeline was originally envisaged to transport Iranian gas to energy-deficient Pakistan and India.
However, India has not participated in talks on the venture since 2008. Pakistan and Iran declared last year that they would go ahead with the project bilaterally if India maintained its stance of not joining the venture.
Analysts said India stand was influenced by security concerns and the high transit fees being sought by Pakistan for gas to be transported through its territory.
Iran, Pakistan sign gas pipeline deal