Iran and Pakistan discuss US $1.8 billion gas pipeline

Iran has proposed the construction of a gas pipeline connecting the country to Pakistan.

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By  Eudore Chand Published  January 13, 2004

Iran has proposed the construction of a gas pipeline connecting the country to Pakistan. The US $1.8 billion project was presented to Islamabad by Najadi Hussaini, deputy minister for international affairs, Iranian Petroleum Ministry, during a recent trip to Pakistan. The proposal included the supply of gas in bulk at the Pakistan-Iran border and the supply of gas to Pakistani wholesalers. The Pakistani government is searching for new sources of gas as the country’s economic growth is stretching current supplies. According to country’s finance minister, Shaukat Aziz, Pakistan needs more hydrocarbons to support its rapid industrialisation and consumer demand. Islamabad is therefore in talks with Iran, Qatar and Turkmenistan about constructing gas pipelines. However, Aziz noted that the close proximity of Iran to Pakistan meant that it was well positioned for cost-effective projects. The Iranian proposal will be subject to further study by Islamabad, and an Iran-Pakistan Joint Economic Commission meeting will be convened next month to increase existing bilateral trade, investment and economic cooperation between the two countries.

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