Gas project still on despite Iran sanctions, says Pakistan
Sunday, 13 June 2010
ISLAMABAD, June 12 (Commodity Online): A day after the UN imposed fresh sanctions on Iran over its proposed nuke plans; Pakistan said it won't affect its gas pipeline deal with Tehran.
According to country's foreign ministry, the sanctions will not affect the $7.6 billion pipeline project to import natural gas from Iran to meet Pakistan's energy needs.
The UN Security Council Wednesday voted 12-2 to tighten sanctions against Iran over its nuclear program.
"As far as the pipeline project is concerned, it is a commercial agreement to meet our energy deficit and beyond the purview of this U.N. sanctions resolution," it said.
The 560-mile long pipeline project will connect Iran's giant South Fars gas field and Pakistan's Balochistan and Sindh provinces.
Iran, a major oil producing country, needs to secure markets for its huge natural gas reserves, estimated to be the world's second-largest after Russia's.
The project with Pakistan is set to be completed by 2015 and calls for Pakistani imports of 750,000 cubic feet of gas per day for 25 years to be used for generating electricity.
Pakistan expects to save $1 billion annually in energy costs under the deal.
According to country's foreign ministry, the sanctions will not affect the $7.6 billion pipeline project to import natural gas from Iran to meet Pakistan's energy needs.
The UN Security Council Wednesday voted 12-2 to tighten sanctions against Iran over its nuclear program.
"As far as the pipeline project is concerned, it is a commercial agreement to meet our energy deficit and beyond the purview of this U.N. sanctions resolution," it said.
The 560-mile long pipeline project will connect Iran's giant South Fars gas field and Pakistan's Balochistan and Sindh provinces.
Iran, a major oil producing country, needs to secure markets for its huge natural gas reserves, estimated to be the world's second-largest after Russia's.
The project with Pakistan is set to be completed by 2015 and calls for Pakistani imports of 750,000 cubic feet of gas per day for 25 years to be used for generating electricity.
Pakistan expects to save $1 billion annually in energy costs under the deal.