Iran and Pakistan agree 'historic' pipeline deal

[pampango]

Source: BBC

Pakistan and Iran have signed an agreement for the construction of a much-delayed natural gas pipeline, officials say. The pipeline was initially intended to carry gas on to India, but Delhi withdrew from negotiations last year.

Labelled the "peace pipeline," the project was first mooted in the 1990s and originally would have extended from Pakistan to India. Correspondents say that Delhi has been reluctant to join the project because of its its long-running distrust of Pakistan, with which it has fought three wars since independence in 1947.

India has instead invested in civilian nuclear reactors to help fulfill its increasing energy demand. It also signed a landmark civilian nuclear deal with the United States in 2008. Pakistan has argued that it too should make a similar deal with Washington, but correspondents say that so far the US has not shown much enthusiasm.

Under the terms of the deal signed on Tuesday, Pakistan is allowed to charge a transit fee if the pipeline is eventually extended to India. Correspondents say the deal is not likely to be welcomed by the US - because of Tehran's suspected ambitions to build nuclear weapons.

Read more: http://news.bbc.co.uk/2/hi/south_asia/8572267.stm

[ShortnFiery]

1. That should piss off the Neo-Cons and Neo-Liberals within our Country?

Bet their heads are figuratively exploding as I type. :evilgrin:

[Robb]

2. Puts Pak on the Turkmen pipe, a little

Iran buys 10 billion cubic meters from Turkmenistan every year, projected to double next year.

...750 million cubic feet is kid's stuff, pure politics and theater.

Edited to add: clearly I can't do math. See responses below for proof. :D

[mbperrin]

3. Um, you do realize that 750 million cubic feet PER DAY is

equal to 7.75 BILLION cubic METERS per YEAR, right?

That's right at 80% of your 10 billion big number. How is that kid stuff?

[Robb]

6. Whoops. Good eye, my mistake.

I could imagine a political reason to do a little, but I have to admit I'm baffled as to why Iran would sell what will be almost half their imported gas.

[muriel_volestrangler]

9. They'll sell it to any buyer; it's still small compared to their production/consumption

CIA Factbook: https://www.cia.gov/library/publications/the-world-factbook/geos/ir.html
Production: 116.3 billion cu m (2008 est.)
Consumption: 119 billion cu m (2008 est.)

So 7.75 billion cu m is just a smallish part of the total amount.

[FarCenter]

4. 7.75 billion cubic meters per year

750 * 365 * 0.0283168466 / 1000 = 7.75.

[Dover]

12. China likes this deal....

Iran-Pakistan pipeline inches nearer reality
By Syed Fazl-e-Haider

KARACHI - Islamabad and Tehran have signed an operational agreement on the Iran-Pakistan (IP) gas pipeline project, a month after the signing was delayed because Pakistan was unable to arrange funds for the project.

The countries signed a "heads of agreement" and certain "condition precedents" to make the gas sales purchase agreement (GSPA) signed last June effective. The signing of these agreements was required for the flow of Iranian gas towards Pakistan to begin in three to four years.

The pipeline as initially mooted was to carry gas from Iran to Pakistan and on to India. India withdrew from negotiations last year over disagreements on price and transit fees, but it is still open for the country to joint the agreement.

The United States, Pakistan's largest aid donor, is reluctant to help Islamabad proceed with the multi-billion dollar pipeline because of the participation of Iran, perceived in Washington as seeking to build nuclear weapons. Some analysts believe that financial sanctions on Iran may delay but not force the cancellation of the pipeline, as China is also keen to join the project. Beijing may provide financial assistance to Islamabad to get the project started.

..snip..

The US has previously pledged all-out support in ensuring energy security for Pakistan, which suffers long and frequent blackouts amid an electricity shortfall of more than 3,000 megawatts. US companies, such as Carlyle Group affiliate 4Gas, Oklahoma-based Walters Co, and Global Edison, plan various energy-related projects in the country.

Critics say that the US interest in resolving Pakistan's energy crisis is an attempt to foil the Iran pipeline project.

Beijing is interested in building a pipeline from Iran via Pakistan into China to secure an overland energy corridor less liable to interruption by US or other forces at times of international tension while also cutting out the 20,000 kilometer tanker route around the southern rim of Asia. Critics say that by opposing the IP project, the US is also trying remove this option for China.

China at present appears to be the sole country holding out against sanctions against Iran over its nuclear policy of the five veto-wielding members of the UN Security Council (the others are United States, Russia, Britain and France). The need for Iranian oil and gas is making it difficult for Beijing to agree with Washington on its stance against Tehran, according to a report in Dawn last month. Approving sanctions against Iran would mean the loss of 10% to 12% of China's oil imports and of hundreds of billions of dollars worth of oil locked into futures contracts, while also ending about $80 billion in Beijing-backed development projects in Iran. If China joins the project, the pipeline would pass through Pakistan's Northern Areas, now known as Gilgit-Baltistan, and into China via the Khunjerab Pass. The pipeline would roughly parallel strategic transport links China is developing between its remote western regions, including Xinjiang, and Gilgit-Baltistan.

http://www.atimes.com/atimes/South_Asia/LC18Df01.html

[closeupready]

5. Finally something good to hear about from South Asia.

n/t

[Dover]

7. "Peace Pipeline" likely undercuts Washington

WASHINGTON, March 17 (UPI) -- Washington is likely irked by the decision from Iran and Pakistan to sign off on the long-delayed Peace Pipeline from the South Pars gas field, analysts said.

..snip..


Washington tried to persuade Pakistan to embrace a rival project from Turkmenistan but instability along the planned route through Afghanistan created complications.

Moeed Yusuf, a South Asia expert for the congressionally funded U.S. Institute of Peace, told The Wall Street Journal that Tuesday's signing was not what Washington had hoped for.

"They don't want Iran getting this opening," he said. "But at this point they're not in a position to offer anything that will stop Pakistan."

Pakistan, under the terms of the Tuesday deal, gets around 750 million cubic feet of natural gas per day from Iran for the next 25 years.


cont'd

http://www.upi.com/Science_News/Resource-Wars/2010/03/17/Peace-Pipeline-undercuts-Washington/UPI-15631268831670/


------

A little history about this pipeline from Wikeipedia:

The Iran–Pakistan–India gas pipeline, also known as the IPI pipeline or the Peace pipeline, is a proposed 2,775-kilometre (1,724 mi) pipeline to deliver natural gas from Iran to Pakistan and India. In April 2008 Iran expressed interest in the People's Republic of China's participation in the project.<1> The project is expected to greatly benefit India and Pakistan, which do not have sufficient natural gas to meet their rapidly increasing domestic demand for energy. India is predicted to require 146 billion cubic meters (bcm) of gas per annum by 2025, up from 33 bcm per annum in 2005.

In September 2009, the Mehr news agency reported a Pakistani diplomat as saying "India definitely quitted the IPI (India-Pakistan-Iran) gas pipeline deal,<2> in favor of Indo-US civilian nuclear agreement for energy security.<3> Iranian officials however said India is yet to make an official declaration.<2>

In January 2010, the United States asked Pakistan to do the same and abandon its plan of receiving natural gas from Iran through a pipeline in order to isolate Iran. US Special Envoy to Afghanistan and Pakistan Richard Holbrooke, during his meeting with Petroleum Minister Syed Naveed Qamar, said Pakistan would have to abandon its pipeline accord with Tehran in order to qualify for extensive American energy assistance especially for importing Liquified Natural Gas (LNG) and electricity. The US told Pakistan that if it cancels its plan of importing gas from Iran through pipeline, the United States would help Pakistan import electricity from Tajikistan through Afghanistan’s Wakhan corridor. Pakistan has yet to consider the offer.<4>


cont'd

http://en.wikipedia.org/wiki/Iran%E2%80%93Pakistan%E2%80%93India_gas_pipeline

-----

Thanks for your post and for keeping us abreast of the 'real' story behind the usual headlines.

[Dover]

8. A little history - Dueling Pipelines - TAPI (thru Afghanistan) and IPI (through Pakistan/India)

Or rather the IPI pipeline should now be referred to simply as the IP (because India pulled out).

Some old DU threads on this topic:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=115&topic_id=198164&mesg_id=198164

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=6901310&mesg_id=6903086

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=6901310&mesg_id=6901310

Do a search - there are many more posts!


Now pay close attention to how Washington responds to this latest deal between
Iran/Pakistan.


----

And then there is China's interest in the deal....


Iran-Pakistan pipeline inches nearer reality
By Syed Fazl-e-Haider

KARACHI - Islamabad and Tehran have signed an operational agreement on the Iran-Pakistan (IP) gas pipeline project, a month after the signing was delayed because Pakistan was unable to arrange funds for the project.

The countries signed a "heads of agreement" and certain "condition precedents" to make the gas sales purchase agreement (GSPA) signed last June effective. The signing of these agreements was required for the flow of Iranian gas towards Pakistan to begin in three to four years.

The pipeline as initially mooted was to carry gas from Iran to Pakistan and on to India. India withdrew from negotiations last year over disagreements on price and transit fees, but it is still open for the country to joint the agreement.

The United States, Pakistan's largest aid donor, is reluctant to help Islamabad proceed with the multi-billion dollar pipeline because of the participation of Iran, perceived in Washington as seeking to build nuclear weapons. Some analysts believe that financial sanctions on Iran may delay but not force the cancellation of the pipeline, as China is also keen to join the project. Beijing may provide financial assistance to Islamabad to get the project started.

..snip..

The US has previously pledged all-out support in ensuring energy security for Pakistan, which suffers long and frequent blackouts amid an electricity shortfall of more than 3,000 megawatts. US companies, such as Carlyle Group affiliate 4Gas, Oklahoma-based Walters Co, and Global Edison, plan various energy-related projects in the country.

Critics say that the US interest in resolving Pakistan's energy crisis is an attempt to foil the Iran pipeline project.

Beijing is interested in building a pipeline from Iran via Pakistan into China to secure an overland energy corridor less liable to interruption by US or other forces at times of international tension while also cutting out the 20,000 kilometer tanker route around the southern rim of Asia. Critics say that by opposing the IP project, the US is also trying remove this option for China.

China at present appears to be the sole country holding out against sanctions against Iran over its nuclear policy of the five veto-wielding members of the UN Security Council (the others are United States, Russia, Britain and France). The need for Iranian oil and gas is making it difficult for Beijing to agree with Washington on its stance against Tehran, according to a report in Dawn last month. Approving sanctions against Iran would mean the loss of 10% to 12% of China's oil imports and of hundreds of billions of dollars worth of oil locked into futures contracts, while also ending about $80 billion in Beijing-backed development projects in Iran. If China joins the project, the pipeline would pass through Pakistan's Northern Areas, now known as Gilgit-Baltistan, and into China via the Khunjerab Pass. The pipeline would roughly parallel strategic transport links China is developing between its remote western regions, including Xinjiang, and Gilgit-Baltistan.

http://www.atimes.com/atimes/South_Asia/LC18Df01.html

[Mari333]

10. keeping an eye on the corporate powers behind the curtain

and the real reasons we are in afghanistan.

[Dover]

11. True enough, but there are many layers to this complex geo-political chess game.

Consider a game of chess with up to six players on one board!!!

[yurbud]

13. do you think this is why we suddenly noticed terrorists in Pakistan?

Iran's pipeline route makes ''ours'' less valuable.