ISLAMABAD: Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi Monday said that Iran-Pakistan Gas Pipeline Project was vital for Pakistan's energy needs and the government was committed to complete it.
He said this while talking to an Iranian delegation led by Dr Ali Taieb Nia, Iranian Minister for Economic Affairs and Finance, who called on him here Monday.
Shahid Khaqan Abbasi said that due to the international sanctions on Iran, Pakistan has been unable to complete projects on its side, said a press release issued here.
Despite our best efforts banks, international contractors and equipment suppliers were not ready to be involved in this project.
The minister told the visiting delegation: "We are now planning to complete this project in two steps; first, we are installing LNG terminal at Gwadar Port and secondly a 700 km, 42-inche pipeline will be laid from Gwadar to Nawabshah for onward transmission of gas to the northern parts of the country.
He informed the delegation that Pakistan is in negotiation with Chinese companies, for construction of the pipeline and the 70 km portion of the pipeline from Gwadar to Iran border will be completed by Pakistani companies.
He hoped that this project will start in near future.
The minister also stated that Pakistan wants to increase bilateral trade and economic ties with Iran not only in oil and gas sector including LPG petro chemicals and fertilizers but in other fields of the economy as well.
Shahid Khaqan Abbasi mentioned that Pakistan's annual oil imports bill is $ 15 billion, but direct oil trade between Iran and Pakistan is negligible and said that we expect this trade to increase substationally after the sanction issue is closed.
On this occasion Dr Ali Taieb Nia, Iranian Minister for Economic Affairs and Finance said that Iran has already completed its part of the Iran-Pakistan Gas Pipeline Project and hoped that in near future Pakistan will also fulfill its commitment to complete its part of the project.
He expressed his desire the Iranian gas should flow into Pakistan soon so that Pakistan may be able to overcome its energy shortfall.
The Iranian Minister said that Iran's negotiations with international community on nuclear issue had been successful and hoped the sanctions would be removed very soon.
He expressed the hope that with the removal of international sanctions Iran's trade volume and economic relations with its neighbours will further improve.
He said that Iran had great potential to export petro-chemical products, electricity, and fertilizer, and offered Pakistan to benefit from these opportunities.
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