Iran’s gas export deal to Pakistan continues in coma / trade with Pakistanis revived with gas deal
According to the economic correspondent of Fars News Agency, with the coming to power of the 13th government, the foreign policy of the Islamic Republic of Iran expanded from relying solely on the West to interacting with neighboring countries, the region and other neighboring countries.
Some of the achievements of the government in the short period of its responsibility in the field of economic diplomacy are:
- Permanent membership in the Cooperative Organization Shanghai
- Contract swap Gas with Turkmenistan and Azerbaijan at Economic Cooperation Organization (ECO) Summit
- Memorandum of Understanding on Export of Technical and Engineering Services and Petrochemical Products to Turkmenistan
- 40% increase in oil exports to China and follow-up to contracts under the 25-year agreement
- Contract swap Gas condensate with Venezuela
- Iranian President’s visit to Russia and signing of various cooperation agreements in the field of energy, transit and banking
Given Iran’s comparative advantage in having hydrocarbon resources and the position of the oil industry as the driving force of the country’s economy, the Ministry of Oil is usually one of the activists.Most Ministries have been in the revival of economic diplomacy in the thirteenth government.
However, some of the ministry’s priority and available missions in relation to the markets of neighboring countries have been neglected, one of which is “exporting Iranian gas to Pakistan.”
Q: Why was the contract for the export of Iranian gas to Pakistan not implemented?
The contract for the export of Iranian gas to Pakistan under the name of IP pipeline in the form of our peace pipeline between the National Iranian Gas Export Company and ISGS Pakistan was concluded on June 5, 2009 (June 15, 1988) for 25 years, the date of delivery of natural gas to Pakistan 31 December 2014 (December 93) and the volume of natural gas exports was set at 8 billion cubic meters per year (21 million cubic meters per day).
The conclusion of the Iran-Pakistan gas export agreement was a great opportunity for Iran to develop its gas export market, which in addition to increasing the government’s foreign exchange earnings, also made Pakistan politically and economically dependent on Iran. Stopped for unknown reasons.
Former Minister of Oil Bijan Zanganeh removed from the agenda of the Ministry of Oil while implementing this agreement that in the tenth government, the construction of a gas export pipeline to Pakistan up to 200 km from the Pakistani border (Iranshahr in Sistan and Baluchestan province) was done.
* If Iran decides, Pakistanis can not buy Iranian gas
After the project was halted by the Ministry of Oil of the Tadbir and Omid government, the Pakistanis were forced to import liquid fuel to supply the fuel they needed, which is many times more expensive than Iranian gas. As a result, exporting Iranian gas to Pakistan will bring great benefits to both countries, and the two countries have considerable incentives to implement this agreement.
At present, half of the life of the Iranian gas export contract to Pakistan is still left, and if the Ministry of Petroleum is determined to implement this contract, the Pakistani side will not be able to refuse to import Iranian gas, even if it does not want to implement this agreement. Because according to the terms of the contract, if Iran builds its pipeline to the border with Pakistan and that country is not ready to receive gas, it must pay a fine equal to 85% of the contract amount to Iran.
As a result, according to the terms of the contract, the export of Iranian gas to Pakistan is subject to the decision of the Iranian side because it has the upper hand with Iran. All the Ministry of Oil has to do is complete about 200 km of pipeline from Iranshahr to the Pakistani border and establish gas exports. Thus, the Pakistani side will have to pay an 85% fine if it is not ready to import gas.
* Development of Iran’s trade with Pakistan by reviving the gas contract
Of course, on this issue, the priority is to interact with the Pakistanis to export gas to this country. To implement this agreement, the 10th government had decided to complete a part of Pakistan’s pipeline network by providing a $ 200 million loan and contracting the Khatam base, and then the installments of this loan along with بهای Export gas to be repaid by Pakistan.
Implementing a gas export contract to Pakistan can be like experience swap Gas to help restore economic ties with Turkmenistan.
Mohammad Sadegh “Increasing energy interactions with Pakistan could increase trade between the two countries,” said Jokar, head of the Institute for International Energy Studies. “Pakistan is a country with a population of more than 220 million, but Iran’s total trade with Pakistan is very small.”
“Iran’s share of the country’s market with a total trade volume of nearly 60 billion euros in 2020 (40 and 20 billion euros of imports and exports, respectively) is only 170 million dollars,” he said. Interestingly, the export volume of countries such as Indonesia and Malaysia is 2.1 billion euros and 950 million euros, respectively. Pakistan’s trade with Turkey is even $ 300 million, and that figure is rising. “Turkey, whose route of interaction with Pakistan passes through Iran or is forced to travel a longer route and move over Iran to cooperate.”
It remains to be seen what the 13th government’s Ministry of Oil plans to export gas to Pakistan. The ministry’s plan to export to the country may have been postponed until after gas consumption peaks this year. But apart from these speculations, the Ministry of Oil has not yet presented any plans on the issue of Iranian gas exports to Pakistan.
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