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Saturday, April 30, 2011

Pakistan's Gas Purchase Agreement With Iran

The people of Pakistan face the menace of load shedding of gas in winter and that of electricity in summer. This bad luck of the people of the people has been created by the rulers, otherwise Pakistan is among the riches country in natural resources. The vehicles, factories and power generation plants were converted to gas usage during the former president Musharraf rule, who though when we have cheaper gas why to import oil. Though, his his desire was based on sincerity but unforgettably he could not foresee that has Pakistan that much gas reserves that could fulfill the needs?. Today Pakistan needs 4 billion cubic feet gas daily and the demand is increasing whereas supply and production can not meet the demand. During winter when gas requirement is much higher, shortage of gas occurs. To fulfill the gas needs Pakistan wants to purchase gas from Iran and Turkmenistan. Pakistan has already signed an agreement with Iran for gas supply and it has been decided that Pakistan will start receiving 6.5 million cubic feet gas daily from December 31, 2014 from Iran. according to the terms and conditions of the agreement, if Pakistan could not build gas pipe line in its territory then Iran will be paid $8 million for the price fixed for daily consumption by Pakistan. India too was included in the agreement but wise Hindu guy separated itself from the agreement due to two reasons. One was dispute on the price, due to the expiration of Shale gas through new technology in the USA, the gas prices per Million British Thermal Units(MMBTU) fell from $ 13 to 4-5 while that of oil increased. Iran fixed its gas price to $ 8 per MMBTU and Pakistan is purchasing at this rate while India refused to purchase gas on this price.

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