Crucial talks in Tehran tomorrow
Pakistan, Iran may ink gas price deal
Shah Hasan
Islamabad—Pakistan and Iran are most likely to finalize the Gas
sales purchase Agreement for the gas to be imported under proposed $
3 billion IP gas line during the Tehran talks scheduled on May
22-23.
“Both sides, according to the sources, are hopeful to seal the gas
price deal this time as federal cabinet of Pakistan has already
given the mandate to Mi istry of petroleum and Natural Resources to
sign the much awaited deal even at 80 percent of the crude oil price
as desired by the Iranian authorities,” a senior official at
Ministry of Petroleum and Natural Resources told Pakistan Observer.
The official said that 6 to 7 member Pakistan’s delegation headed by
Dr Asim Hussain, Advisor to Prime Minister on Petroleum will today
(Thursday) leave the country for Iran to hold crucial talks on gas
price issue.
In case both the sides inked the deal at 80 percent of the crude oil
price, then the price would be hovering at $ 5 to $6 per MMBTU gas
and Pakistan will have to spend the huge precious foreign exchange
amounting to $ 1.5 billion per annum for import of the gas.
It is pertinent to mention that Iran had earlier backed out after
initialing the GSPA (gas sales purchase agreement) and demanded more
increase in the prices.
Iran did not budge even an inch from his stands and placed the
demand of 80 percent of crude oil price for the price of the gas
that will be imported by Pakistan. “This forced federal cabinet to
approved the price of 80 percent of the crude oil.”
However, Pakistan’s delegation, according to the sources, is all set
to negotiate the gas price below the 80 percent of the crude oil.
In case the deal gets struck, Pakistan is to import 750 million
cubic feet gas per day that will be used for power generation of
5000 MW.
