PTI, Jan 9, 2008: Pakistan government on Tuesday approved a gas purchase agreement to be signed with Iran for a multi-billion dollar gas pipeline project which also involves India.

The gas sale and purchase agreement, initiated during talks held with Iran on December 18, 2007, was approved by the Economic Coordination Committee (ECC) of the Cabinet during a meeting chaired by caretaker Prime Minister Mohammedmian Soomro.

A statement from the Prime Minister's House said Pakistan will make a formal request to Iran to allocate it an additional 1.05 billion cubic feet per day of gas in case India does not join the project. "The Prime Minister, while according approval to the Pakistan-Iran Gas Pipeline Agreement, said without reliable sources of energy the future progress, development and prosperity cannot be realised," the statement said.

Pakistan's Petroleum and Natural Resources Minister Ahsanullah Khan had said Monday that the gas purchase agreement with Iran would be signed next week. Soomro appreciated the efforts of the Petroleum and Natural Resources Ministry and others involved in the negotiations and finalisation of the agreement with Iran for purchasing gas.

The gas purchase agreement includes provisions for the issuance of a guarantee by the Government of Pakistan and back- to-back agreements with Pakistan's state-run Sui Northern Gas Pipeline Limited and Sui Southern Gas Company for resale of the imported gas.

 

@ The Bangladesh Journal