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Tuesday, 1 September 2009

Pakistan Stands by Iran in Gas Pipeline Project

Pakistani Foreign Minister Makhdoom Shah Mehmood Qureshi on Monday dismissed US pressures on Islamabad to retreat from a long-waited multi-billion-dollar pipeline project to bring Iran's gas to the south Asian nation, underlining that his country is committed to its partnership with Iran over the project.



"The energy agreement with the US leaves no impact on the gas pipeline construction agreement with Iran and Pakistan will by no means go under the US pressures," Qureshi told FNA, reminding that an energy pact with the US cannot satiate his country's needs to foreign energy supplies.

He reiterated that the only way to meet his country's energy needs is importing gas through the pipeline from Iran.

Referring to the remarks by Richard Holbrooke, the US special representative to Afghanistan and Pakistan, that the US would cooperate with Pakistan in energy fields provided that the country cancels its cooperation with Iran on the gas pipeline, Qureshi dismissed the remarks and said, "Pakistan is standing firmly by Iran to complete the project."

The gas pipeline deal was signed by Iranian and Pakistani officials in Istanbul, Turkey in May.

The 2700-kilometer long pipeline was to supply gas for Pakistan and India which are suffering a lack of energy sources, but India has evaded talks. Last year Iran and Pakistan then declared they would finalize the agreement bilaterally if India continued to be absent in meetings.

In a major breakthrough on March 20, the Pakistani government approved Iran's proposed pricing formula for gas supplies to the South Asian nation.

According to the project proposal, the pipeline will begin from Iran's Assalouyeh Energy Zone in the south and stretch over 1,100 km through Iran. In Pakistan, it will pass through Baluchistan and Sindh but officials now say the route may be changed if China agrees to the project.

The gas will be supplied from the South Pars field. The initial capacity of the pipeline will be 22 billion cubic meters of natural gas per annum, which is expected to be later raised to 55 billion cubic meters. It is expected to cost $7.4 billion.

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