President Asif Ali Zardari and his Iranian counterpart Dr Mahmood Ahmadinejad on Sunday signed an intergovernmental framework declaration to support within the framework of their respective laws and regulations, the gas deal signed by the oil ministries of the respective countries.
Earlier the Gas Sale Purchase Agreement (GSPA) was signed by the MD National Iranian Oil Company (NIOC) and MD Inter-state Gas System for export of Iranian natural gas to Pakistan at the border of Iran-Pakistan for domestic consumption in Pakistan.
The deal known as "peace pipeline" was signed on the sidelines of the current tripartite summit of Pakistan, Afghanistan and Iran on elimination of terrorism, drug and human trafficking, held here on Sunday. Foreign Minister Shah Mehmood Qureshi, Interior Minister Rehman Malik, Advisor to Prime Minister on Finance Shaukat Tarin and Advisor to Prime Minister on Petroleum and Natural Resources Dr Asim Hussain were also present during the signing ceremony of the gas deal.
The 2100-kilometer long pipeline is to transfer Iranian gas to Pakistan. Some 1100-kilometre of pipeline would be laid in Iran's territory and 1000-kilometre in Pakistan. The project is to transfer about 750 million cubic feet of gas per day. Construction of the pipeline is to be completed in five years. Pakistan and Iran will sign the formal agreement for the multi-billion dollar gas pipeline project in a third country within the next 15 days, Advisor to Prime Minister on Petroleum and Natural Resources Dr Asim Hussain told APP here on Sunday.
He said the two countries on Sunday signed a final consultative process document as well as an inter governmental framework document of the gas pipeline project known as IPI.
Under the document, signed on Sunday between the Iranian National Oil Company and Interstate Gas System of Pakistan, Iran will provide 750 million cubic feet of gas per day to Pakistan for the next 25 years. Dr Asim termed the agreement to sign the deal a breakthrough.
He said negotiations were going on for the last ten years on the IPI, and today it was a big achievement for Pakistan owing to the efforts of President Asif Ali Zardari. He said once Pakistan starts getting Iran's gas supply, it will greatly help overcome the country's energy needs.
Minister for interior Rehman Malik said that it was a great achievement for Pakistan to supplement and overcome the energy crisis. Pakistan had made it clear to Iran that it was ready to sign the agreement even if India opt-out.
Some 1,100 kilometers of pipeline would be laid in Iran's territory and 1,000 kilometers in Pakistan. Construction of the pipeline is to be completed in five years.