Iran to provide oil, credit to Pakistan for gas pipeline
February 29, 2012 - 16:24
Iran has offered to provide 80,000 barrels of crude oil per day to neighboring Pakistan on three month payment terms, The News reported, citing Pakistan’s minister for petroleum and natural resources, Asim Hussain.
Iran has also agreed to provide $250 million in credit to the country for completing a $1.3 billion pipeline that will carry natural gas from Iran, the report said, citing Hussain.
Pakistan, which is going ahead with a bilateral gas pipeline with Iran despite the U.S. pressure, said that Tehran has agreed to provide USD 250 million for the project and export 80,000 barrels of crude oil a year to this country.
Petroleum Minister Asim Hussain told a Parliamentary committee that Pakistan had sought USD 500 million for the pipeline but Iran agreed to provide only 250 million dollars. He also said that Iran had agreed to export 80,000 barrels of crude oil a year to Pakistan.
A Pakistani delegation would visit Tehran in mid-March to discuss and finalize details related to the project.
The tender for building the pipeline would be issued next week, the minister said.
Despite pressure from the U.S. not to go ahead with the pipeline following sanctions on Iran by Western powers, Pakistani leaders, including President Asif Ali Zardari, had said they were committed to the project as it was necessary to meet the country's burgeoning energy needs.
Russia had reportedly shown interest in constructing the pipeline.
(Source: Bloomberg)
Iran has also agreed to provide $250 million in credit to the country for completing a $1.3 billion pipeline that will carry natural gas from Iran, the report said, citing Hussain.
Pakistan, which is going ahead with a bilateral gas pipeline with Iran despite the U.S. pressure, said that Tehran has agreed to provide USD 250 million for the project and export 80,000 barrels of crude oil a year to this country.
Petroleum Minister Asim Hussain told a Parliamentary committee that Pakistan had sought USD 500 million for the pipeline but Iran agreed to provide only 250 million dollars. He also said that Iran had agreed to export 80,000 barrels of crude oil a year to Pakistan.
A Pakistani delegation would visit Tehran in mid-March to discuss and finalize details related to the project.
The tender for building the pipeline would be issued next week, the minister said.
Despite pressure from the U.S. not to go ahead with the pipeline following sanctions on Iran by Western powers, Pakistani leaders, including President Asif Ali Zardari, had said they were committed to the project as it was necessary to meet the country's burgeoning energy needs.
Russia had reportedly shown interest in constructing the pipeline.
(Source: Bloomberg)