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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Following the breakthrough between Iran and leading world powers on its nuclear program, Pakistan announced this week that it had agreed to speed up development of its gas pipeline with Iran. The IP gas pipeline project is designed to link Iran's massive South Pars Gas Field with markets in South Asia.
The U.S. has consistently opposed the $7.5 billion project as part of the international sanctions aimed at preventing Iran from developing a nuclear weapons capability. The announcement of the fast-tracking of the pipeline project will be a test for the six-month sanctions relief period and for the U.S., which will want to be positioned to move either way. Apart from its history with Iran, U.S. relations with Pakistan blow hot and cold in regular cycles.
Iran already has invested hundreds of millions of dollars and almost completed the 900-kilometer section on its territory to the Pakistan border. Under the agreement between the two countries, Pakistan would import 21.5 million cubic meters of gas a day starting in 2014. Pakistan this year has made a concerted effort to re-vitalize its power generation program and faces the challenge of energy shortages throughout the economy, but it has held back on construction of its section due to lack of funding and U.S. pressure.
For related information see August 23, 2013 -- Iran-Pakistan Pipeline at Least Two Years from Completion as Obstacles Grow, and May 1, 2012, article - Pakistan Pushes Tendering of Gas Pipeline with $500 Million from Iran.
View Project Report - 300068757 300068787 300068789 300056663
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The U.S. has consistently opposed the $7.5 billion project as part of the international sanctions aimed at preventing Iran from developing a nuclear weapons capability. The announcement of the fast-tracking of the pipeline project will be a test for the six-month sanctions relief period and for the U.S., which will want to be positioned to move either way. Apart from its history with Iran, U.S. relations with Pakistan blow hot and cold in regular cycles.
Iran already has invested hundreds of millions of dollars and almost completed the 900-kilometer section on its territory to the Pakistan border. Under the agreement between the two countries, Pakistan would import 21.5 million cubic meters of gas a day starting in 2014. Pakistan this year has made a concerted effort to re-vitalize its power generation program and faces the challenge of energy shortages throughout the economy, but it has held back on construction of its section due to lack of funding and U.S. pressure.
For related information see August 23, 2013 -- Iran-Pakistan Pipeline at Least Two Years from Completion as Obstacles Grow, and May 1, 2012, article - Pakistan Pushes Tendering of Gas Pipeline with $500 Million from Iran.
View Project Report - 300068757 300068787 300068789 300056663
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
