Publish Date: 16 February 2013 - 14:10

Iran and Pakistan are set to sign an agreement on the construction of a multi-billion-dollar natural gas pipeline between the two Asian countries.

Pakistan’s public sector firm Interstate Gas Systems and Tehran-based Tadbir Energy Development Group will sign the contract in Islamabad on Friday, the English-language Pak Tribune reported.

Adviser to the Pakistani Prime Minister on Petroleum and Natural Resources Asim Hussain said on Thursday that the Iranian company would complete the process of constructing the pipeline in 15 months.


Pakistani firms Frontier Works Organization (FWO), Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) will also take part in the construction of the gas pipeline.

Tadbir Energy Development Group will reportedly undertake all engineering procurement and construction work for the first segment of the project, which starts from the Iran-Pakistan border and costs around USD250 million.

The Iranian firm will also carry out the second segment of the project, and extend the financing later to USD500 million.

The remaining amount is expected to be generated through Pakistan’s Gas Infrastructure Development Cess (GIDC).

The Iran-Pakistan gas pipeline, projected to cost USD1.2-1.5 billion, would enable the export of 21.5 million cubic meters of Iranian natural gas to Pakistan on a daily basis.

Iran has already constructed more than 900 kilometers of the pipeline on its soil.
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