Pakistani government official has announced that the authorities will renegotiate the price agreement for the import of natural gas with the government of Iran shortly. An import agreement has been recently signed
between the two countries for the supply of 750 million cubic feet per day (MMCFD) of natural gas by 2014.

A $3.6 billion pipeline deal has been finalised previously, with an option of revising the gas prices until the execution of the supply. Islamabad government has decided to renegotiate with Iran after the final round of talks with
Turkmenistan for the supply of natural gas on much lower prices.

“We will definitely renegotiate gas price with Iran. The (gas sales and purchase) agreement with Iran provides for price renegotiation before the commencement of gas flows,” Petroleum Minister Dr Asim Hussain told journalists on
Sunday, a day before Turkmen President Gurbanguly Berdimuhamedow arrives in Islamabad on a two-day visit.

The minister cited that on the current pricing formula for the import of gas, the Turkmen gas will be 10 per cent cheaper than that from Iran. He insisted that the price for Iranian gas must be brought down with negotiations and
this will save a huge amount of money in the coming years.

“We expect to secure from Iran and the one we have already finalised with Turkmenistan a cumulative saving of about $100 billion over a period of 25 years with the two projects,” said Hussain.

The official further told that the Gas Sales and Purchase Agreement (GSPA) will be initiated during the Turkmen President’s visit to Pakistan, while the formal signing of the agreement will be conducted later, as the transit fee
for the pipeline in Afghanistan was not yet clear.

Hussain further asserted that it won’t be a problem for the government of Pakistan to finance the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project. He told the reporters that a lot of work has already been done on
the Iran-Pakistan pipeline project and its design engineering report is expected within 15 days.