Russia Replaces Iran in Pakistan’s Gas Import Market
Energy experts in Iran stated on Thursday, June 4th, in a conversation with Trade News that Russia has replaced Iran in the gas export market to Pakistan and cited “the absence of successful economic diplomacy” on Iran’s part in this matter.
According to the report, Pakistan recently signed a contract with Russia to import 12.5 billion cubic meters of gas annually, at a time when Iran has been constructing the Peace Pipeline since 1990 to export gas to Pakistan.
According to the Hydrocarbon news website, construction of this pipeline is set to begin within 60 days and its construction cost is estimated at 2.25 billion dollars.
The “Peace Pipeline” has been one of the controversial issues between Iran and Pakistan in recent years.
The Peace Pipeline is the name of Iran’s gas export pipeline to India and Pakistan, which, based on agreements reached, Iran committed to selling its gas to India and Pakistan at an agreed price for 25 years.
In May 2019, the Pakistani government officially announced through a letter to the Islamic Republic that constructing the pipeline in that country is impossible due to American sanctions in the country.
Although Iranian officials initially threatened the Pakistani government with complaints and claims for compensation, Pakistani media later reported changes in the terms of the gas agreement between the two countries.
Based on the changes made to the initial agreement, Iran no longer has the right to file complaints or seek compensation from Pakistan for delays in receiving gas.
Mohammad Ali Khatibi, Iran’s former representative to OPEC and energy analyst, stated on Thursday in a conversation with Trade News that the loss of Iran’s market in Pakistan in favor of Russia is due to “the absence of successful economic diplomacy” on Iran’s part.
He said: “The initial and general agreement was that we would lay a gas pipeline from the Iranian side and the Pakistani side would also lay a gas pipeline from Pakistan’s side, but they did not fulfill their commitments. In any case, naturally two pipelines would not connect to each other.”
He explains: “In any case, the importing country has the right to choose the best option among suppliers, and we should maintain our customers among all exporters, but when we agree and enter the operational phase, the other party should also do the same.”
Mahmoud Tahidast, a member of the Board of Directors of the Iran-Pakistan Chamber of Commerce, also responded to this issue by telling Trade News: “Iran was even willing to pay for this pipeline, but unfortunately no action has been taken to construct this pipeline yet, and Pakistan is currently importing gas from Russia and Turkmenistan.”
He continued: “Pakistan has plans to import liquefied gas that Iran is unable to provide, and on the other hand, Pakistan’s private sector is more active than its government sector, which may not be interested in buying gas from us.”
Source: Radio Farda
