Pakistan and Iran sign agreement to supply Iranian gas to Pakistan
Officials have informed that Pakistan and Iran signed an agreement to supply Iranian gas to Pakistan through a $7.5 billion pipeline to be completed in 2014.
The Dawn newspaper has reported that under the 25-year supply agreement, Pakistan will import 750 million cubic feet a day with a provision to increase that to 1 billion cubic feet a day.
Dawn further said that the imported gas will account for about 20 percent of Pakistan's current gas production and will be used by the country's power sector to generate about 5,000 megawatts of electricity.
Pakistan's section of the pipeline project is estimated to cost $1.65 billion.
Pakistan's Petroleum Minister Naveed Qamar said that construction of the pipeline would create jobs, vocational training and development for the impoverished Balochistan and Sindh areas.
He further said, "The … project, will be another testimony of the long historic and cordial relations between Pakistan and Iran." (With Inputs from Agencies)