Iran agrees to negotiate amendment in Gas Sale Purchase Agreement | Pakistan Today

Iran agrees to negotiate amendment in Gas Sale Purchase Agreement

Iran has agreed with Pakistan to negotiate amendment in the Gas Sale Purchase Agreement (GSPA) for
implementation of the IP gas pipeline project in the extended period.

“Pakistan has requested Iran for amendment in the GSPA and sent a draft accordingly. Iran has agreed to negotiate the same along with some other amendments, which are awaited,” official sources in the Ministry of Petroleum and Natural Resources told APP.
The sources said that the revised timeline for completion of the project would be decided mutually in the forthcoming meetings.
Sharing details of the project, the sources said Inter-Governmental Framework Declaration was signed between the two countries on May 24, 2009, while GSPA agreement was reached on June 2009.

The 56-inch diameter pipeline will initiate from South Pars gas field, Iran, and end at Nawabshah covering a distance of around 1,931 kilometer with 1,150 km portion in Iran and 781 km in Pakistan.
The implementation is to be done on the basis of a segmented approach whereby each country will be responsible for construction of pipeline in the respective territory.
The 750 mmcfd gas flow in the pipeline is projected to help generate over 4000 MW electricity along with creating job opportunities in backward areas of Balochistan and Sindh.
Moreover, they informed that construction work on the 700-kilomtre Gwadar-Nawabshah gas pipeline was expected to commence soon on the same route of IP gas pipeline project in collaboration with China.

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