ISLAMABAD – The natural fuel rich country Iran has yet again offered to start supply of its natural gas as soon as from next month but decision to this would definitely need the courage by Pakistan’s government.
The Council General of Iran Mehdi Subhani clearly stated that it is up to Pakistan now if it wants Iran’s gas.
Pakistan Muslim League-Nawaz (PML-N)’s federal government preferred to to purchase Liquefied Natural Gas (LNG) from United States’ favorite Arab state Qatar in April refusing to complete Iran-Pakistan Gas Pipeline Project within deadline
However, the Iranian side of the $ 7.5 billion project is almost complete but Pakistan has run into repeated problems paying for the 780 kilometer (485 miled) section to be built on its side of the border.
Though the US opposes the Iran-Pakistan Gas Pipeline Project due to the standoff with Iran, it is pleased with Pakistan’s efforts to strike an LNG import deal with Qatar. Doha holds a stake in the LNG terminal in US.
The most compelling argument offered by the Ministry in favor of buying LNG has been that it is a cheaper fuel for electricity. But at anything more than $ 14/MMBTU, LNG loses its competitive advantage against oil.