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  • Mar 17th, 2010
  • Comments Off on Pakistan and Iran sign gas pipeline deal
Pakistan and Iran signed the Heads of Agreement (HOA) and Operational Agreement (OA) in Istanbul on Tuesday, which was earlier finalised and initialled by ISGS and NIOC. The two documents are part of the conditions precedents to be finalised to make the GSPA effective.

The Federal Minister of Petroleum and Natural Resources Syed Naveed Qamar termed the signing, a historic achievement and a milestone towards meeting the energy needs of the country. He expressed hope that physical work would start soon enabling the gas into the system by the timeline.

The Heads of Agreement deal with transporting the Indian gas volume through the Pakistani territory if and when India decides to join the project. As per the HOA, Pakistan will have the right to charge the transit fee in return of the safe transit of Indian volume. HOA also addresses the Transportation Tariff part, which would be calculated in line with international practices.

The second document signed OA, which deals with the operational aspects of the IPI. After signing of the above documents, the GoP will issue the guarantee to make the GSPA effective. The gas volume of 750MMcfd-1 bcfd is expected to be in the Pakistan system to meet the gas shortfall in the country by 2015.-PR

Copyright Business Recorder, 2010


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