Pakistan needs energy help from Iran


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Iran-Pakistan-India Gas Pipeline (IPI) to deliver South Pars natural gas to Pakistan, 750 million cubic feet per day, enabling power generation, electricity exports, and transmission lines under a 25-year deal amid pricing and security constraints.

 

The Situation Explained

A trilateral natural gas project sourcing South Pars to supply Pakistan 750 MMcfd for power, under a 25-year agreement.

  • June bilateral deal advanced 1,724-mile route and tri-party scope.
  • Pakistan to receive 750 MMcfd for power generation.
  • South Pars supplies feedstock; 25-year offtake framework.
  • Iran to extend $55 million credit for 1,000 MW transmission lines.

 

Tehran and Islamabad should move in harmony to expand bilateral energy relations as Pakistan struggles to overcome a looming energy crisis, officials say.

 

Islamabad and Tehran in June signed a bilateral deal for the proposed 1,724-mile Iran-Pakistan-India natural gas pipeline. Pakistan would receive 750 million cubic feet per day from the South Pars gas field in Iran to generate electricity, with plans to add more than 5,000 MW under the terms of a 25-year deal.

Mian Shaukat Masud, the president of the Islamabad Chamber of Commerce and Industry, told a delegation from Tehran that Iran should increase energy exports to Pakistan, the Pakistani newspaper News International reports.

Pakistan is facing an acute energy crisis, he said, and Iran should enhance its exports to help Pakistan overcome power shortages, including plans for 10 nuclear plants in partnership with China.

He added trade between the two countries has yet to reach its full potential on a variety of fronts, as Iran has expressed interest in expanded electricity exports as well.

Iran agreed to a recent deal to extend a $55 million line of credit to Pakistan, while Pakistan and China reached a nuclear energy deal to expand capacity, for transmission lines for 1,000 MW of electricity.

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