Official: Iran Able to Execute IP Gas Pipeline Project without U.S. and Europe

Iran is able to implement the Pakistani part of the gas pipeline project without any technical support from the United States and Europe, Ali Akbar Velayati, the adviser to Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei on international affairs said.

He went on to say that, strategic cooperation between Iran and Pakistan is not only for mutual benefit but also in the interest of the region and the world, Iran’s SHANA news agency reported.

“Bilateral relations between two countries have remarkably improved after the signing of the Iran-Pakistan agreement for a gas pipeline project,” he said.

It’s worth mentioning that, the Pakistan cabinet recently approved a $1.5 billion deal with Iran for laying the 785 km pipeline in Pakistan’s territory.

Tariq Sayeed, Chairman Pak-Iran Business Council and former President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) hailed the Government of Pakistan for its decision to materialize Iran- Pakistan Gas Pipeline project.

Sayeed said that the approval of $1.5 billion by the Cabinet for construction of 785km gas pipeline is a bold decision.

There is also a suggestion that Iran will allocate a 500 million dollar credit to the project and the remaining financial needs will be met by collecting taxes from gas consumers in Pakistan.

In addition, it is planned Iranian and Pakistani companies form a joint venture for completion of the pipeline inside Pakistan territory.

Under a contract between the two countries, Iran will export annually 7.8 billion cubic meters of gas to the neighboring country.

[mappress]
LNG World News Staff, February 5, 2013; Image: NIGC