Iran to build Pakistan\'s gas pipeline

Pakistani Federal Minister for Petroleum and Natural Resources Asim Hussain informed the country\'s National Assembly that during the Iranian Vice-President for International Affairs to Pakistan from February 5th to 7th 2012, the Iranian side offered to construct the IP pipeline in Pakistan and offered to provide $250 million funding for the project. Pakistan\'s delegation was scheduled to visit Iran soon to discuss details with the Iranian side in this regard. About the countries facilitating the IP gas project, the minister said that Pakistan was currently in consultation with many countries and the process was going on. However no firm arrangement has been made so far. To a query whether United States has raised objections over the project, he said that Pakistan had so far not received any official communication from the US pertaining to the project. However there have been some public statements in this regard by the US government. The 2700-kilometer long pipeline was to supply gas for Pakistan and India which are suffering a lack of energy sources, but India has evaded talks. Last year Iran and Pakistan declared they would finalize the agreement bilaterally if India continued to be absent in the meetings. According to the project proposal, the pipeline will begin from Iran\'s Assalouyeh Energy Zone in the south and stretch over 1,100 km through Iran. In Pakistan, it will pass through Baluchistan and Sindh. The gas will be supplied from the South Pars field. The initial capacity of the pipeline will be 22 billion cubic meters of natural gas per annum, which is expected to be later raised to 55 billion cubic meters. It is expected to cost $7.4 billion.