Pak-Iran gas pipeline agreement signed

ISLAMABAD: Pakistan and Iran signed the Heads of Agreement (HOA) and (Operational Agreement)OA in Istanbul, Turkey, which was earlier finalized and initialed by ISGS and NIOC. The two documents are part of the Conditions Precedents to be finalized in order to make the GSPA effective.

The Federal Minister of Petroleum and Natural Resources Syed Naveed Qamar while expressing jubilation has termed the signing a historic achievement and a milestone towards meeting the energy needs of the country, says a press release issued by Petroleum Ministery here on Tuesday. He expressed the hope that physical work would start soon enabling the gas into the system by the timeline.

The Heads of Agreement deal with the transporting the Indian gas volume through the Pakistani territory if and when India decides to join the project.

As per the HOA, Pakistan will have the right to charge the transit fee in return of the safe transit of Indian volume.HOA also addresses the Transportation Tariff part which has been agreed to be worked out in line with the International practices.

The second document signed today is the OA which deals with the operational aspects of the IPI.

After the signing of the above documents, the GoP will issue the Guarantee in order to make the GSPA effective.

The gas volume of 750MMcfd-1 bcfd is expected to be in the Pakistan system to meet the gas shortfall in the country by middle of 2015.