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Pakistan, Iran Agree to Amend Gas Deal

Pakistan and Iran have reportedly agreed to amend the sale purchase agreement to extend the timeframe for completion of the Iran-Pakistan (IP) gas pipeline, Business Recorder reported on Wednesday.

Sources have told the newspaper that the decision was taken earlier this year. The current agreement was signed in 2009.

The future of much delayed Iran-Pakistan (IP) gas pipeline remains uncertain as Pakistan has not been able to raise funds to complete the section of the pipeline would pass through its territory as the project still attracts some sanctions.

Iran has already built 900 km length of the pipeline on its territory while Pakistan still has to start work on the pipeline. Once the pipeline is operational, about 250 million cubic feet gas would be imported from Iran during first year, while in the second year the import of gas would be enhanced to 500 million cubic feet while in the third year 750 million cubic feet gas would be imported.

Iranian gas exports were to commence on January 1, 2015. Since, the project could not be completed Pakistani side proposed to extend the time for completion of the project, Business Recorder reported.

Source: NATURAL GAS ASIA

 

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