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Iran, Pakistan, India agree gas price for transnational pipeline

16 July, 2007

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NEW DELHI:Iran, Pakistan and India have agreed on a formula for the price of natural gas to be pumped through a pipeline that will link the three countries, India's Asian Age daily said.

The deal has removed the main obstacle to the signing of a three-way agreement on building the 2,300 km Iran-Pakistan-India (IPI) pipeline with an estimated price tag of $7.5 billion. The first deliveries from gas-rich Iran are expected in 2011.

The price formula is based on the cost of natural gas in Japan, which has been accepted as the most suitable yardstick. Japan is one of the world's largest consumers of natural gas, and has a relatively stable energy market.

Hojatollah Ghanimifard, special representative of Iran's petroleum minister on the pipeline project, and the ministry's international affairs chief, was cited by the Indian paper as saying that under the model that has been worked out, "when the contract is signed, no set figure will be specified, and the price will be calculated according to the said formula."

Ghanimifard said the main obstacle is a deadlock between India and Pakistan on setting gas duties. He said the country's petroleum ministers had reached a decision that will resolve this issue.

India and Pakistan are under U.S. pressure not to do business with Iran in the energy sector. But the parties to the project have repeatedly stated their resolve to move forward with the key project, regardless of Washington's opposition.

Reader Comments:

Iran, Pakistan and India agree

Nothing is better than this agreement when three countries of the region sign a Gas Pipeline Deal which will bring prosperity to all. A project of $7.5 billion will create so many jobs for Pakistani personnel and a huge sum of royalty will be earned. Its a thrilling news which finally came to all the people of three countries and they must be over joyed with this collaboration

mohammad, United Arab Emirates - 16 July, 2007

Energy related peace through IPI

Gas prices comparable to Japanese market, America's Henery Hub OR the Canadian GAS plants based,price to India and Pakistan around 5 USD per million BTU or 1000 cubic feet is fair.

But, the economic, energy security,political and most important peace and unity prodding in the region necessitates the need of IPI.Pak India peace and economic integrity demands IPI. The economic forward mobility of south Asia in coming times warrants the necessity of IPI.

THREE QUARTER OF A TRILLION CUBIC FEET OF GAS PER YEAR FOR START AND INCREASE TO 2 TRILLION CUBIC FEET PER YEAR AT CAPACITY WILL BE VERY IMPORTANT FACTOR IN THE ENERGY EQUATION OF BOTH INDIA AND PAKISTAN. THE ENERGY EQUIVALENT OF GAS FROM IPI ENSURES GAS SUPPLIES TO SOUTH ASIA AT HALF PRICE COMPARED TO SIMILAR AMOUNT OF ENERGY THROUGH OIL.

YOU ARE TALKING OF 2 TRILLION CUBIC FEET OF GAS PER YEAR, WHICH IS EQUIVALENT TO ONE MILLION BARREL OF OIL PER DAY.YOU ARE TALKING OF ENERGY EQUIVALENT OF 25000 MEGAWATTS HR FROM THIS GAS EVEN AT 40-50 PERCENT CONVERSION FACTOR OF GAS INTO POWER AS NORMAL GAS TO POWER PLANTS.THIS IS THREE TIMES MORE THAN 8000 MEGAWATT OF ENTIRE US-INDIA NUCLEAR ENERGY DEAL THAT COULD COST 35 BILLION DOLLARS FOR 20 NUCLEAR REACTORS OF 400 MEGAWATT HR EACH.

MORE THAN 98 PERCENT OF AMERICA'S OWN 23 TRILLION CUBIC FEET OF TOTAL GAS USAGE IS DONE THROUGH PIPE LINE TRANSPORT OF GAS PROCESSED BY CHEAP AMINE PROCESS.YOU CAN BUILD 100 MILLION SCFD GAS PROCESS PLANT FOR ONLY 25 MILLION DOLLARS, WHEREAS YOU NEED 1 BILLION DOLLARS CRYOGENIC LNG PLANT OF SAME GAS TO LIQUID CAPACITY.THERE IS JUST NO OTHER ALTERNATIVE TO IPI FOR SOUTH ASIA.GAS PIPE LINE FROM SUBMERGED UNDER SEA PIPE LINE FROM QATAR OR ESEWHERE WILL BE MANY TIMES MORE EXPENSIVE FOR ECONOMIC SENSE. PIPE LINE FROM TURKMANISTAN'S 100 TCF RESERVES COMPARED TO IRAN'S OVER 1000 TCF CANNOT SATIATE SOUTH ASIA'S ENERGY WANTS, ESPECIALLY, WHEN CHINA HAS ALREADY GONE INTO DEAL WITH TURKMANISTAN TO TAKE IT ALL BY BUILDING A MEGA PIPE LINE FROM TURKMANISTAN TO CHINA.

IRAN'S GAS FIELDS ARE NOT FAR FROM PAKISTAN AND ARE FULLY CAPACITATED FOR CHEAP GROUND PIPE LINE TRANSPORT. IRAN'S GAS CAN BE MORE EASILY PROCESSED AS IT IS MUCH LESS SOUR WITH LIGHTER H2S LOAD AND CO2 AT MORE OR LESS SAME LEVELS AS SAUDI ARAMCO GAS AT 8-12 PERCENT CO2.THIS GAS IS MUCH MORE EASY AND CHEAPER TO PURIFY THAN HEAVY LOADED H2S BASED SOUR GAS OF NORTH AMERICA OR RUSSIA.I HAVE DONE TREMENDOUS AMOUNT OF ENGINEERING WORK ON GAS PROCESS IN NORTH AMERICA AND HAVE PUBLISHED WORLD CLASS GAS ENGINEERING PAPERS IN THE ANNUAL INTERNATIONAL COFERENCES OF THE WORLD'S MOST PRESTIGEOUS LAWRENCE REID GAS CONDITIONING 2004 AT OKLAHOMA, IN AMERICA'S GAS PROCESSORS ANNUAL INTERNATIONAL 2004, IN NACE ANNUAL INTERNATIONAL 2004, IN KYOTO 2004 AND OTHER SPOTS FROM MY GAS ENGINEERING WORK.WITH VERY THOROUGH FAMILIARITY IN BOTH NORTH AMERICAN AND GERMAN GAS PROCESS SYSTEMS, THIS IRANIAN GAS WAS LOVED BY ME WHEN THEY SENT ME SOME FIELD DATA FOR A DESIGN LAST YEAR.I WILL BE IN TEHRAN IN FEW WEEKS AS MORE HELP WILL BE NEEDED AT GAS GATHERINGS SYSTEMS TRANSPORTS IN AND COLLECTION SYSTEMS IN IRAN RATHER THAN THE CLEAN AND NON DAMAGING TO PIPELINE SALES GAS IN IPI TO INDIA/PAKISTAN, WHICH WILL NEED ONLY OUTER CATHODIC PROTECTION FACILITATION.

IPI WILL BIND THE THREE ARYAN NATIONS TOGETHER AND IT WILL FILL A VERY IMPORTANT ENERGY SECURITY GAP OF BOTH INDIA AND PAKISTAN. AND IRAN STANDS TO COLLECT 10 BILLION DOLLARS FROM SALES GAS THROUGH IPI PLUS ANOTHER 5-6 BILLION DOLLARS FROM LPG COLLECTED PRIOR TO GAS PROCESSING. IRANIAN GAS IS MUCH RICH IN LPG(5 PERCENT)AND CAN BE CHILL SEPARATED BEFORE GAS PROCESSING.

THIS PIPE LINE WILL AND HAS TO GO THROUGH FOR THE VERY ENERGY SECURITY OF SOUTH ASIA AND FOR BINDING THE THREE ARYAN NATIONS TOGETHER.


Anwar Mahmood, Canada - 16 July, 2007

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