TEHRAN --Pakistan and Iran have reached agreement on a new $7.5 billion overland pipeline carrying supplies from the South Pars field in the Persian Gulf.
According to Iran's Petro-energy Information Network, Shana, the two countries signed an initial accord last weekend for the project, also known as the "Peace Pipeline." This would cross 1,100 km (684 mi) of territory in Iran and a further 1,000 km (621 mi) in Pakistan, with throughput of around 750 MMcf/d.
Last December, the two countries agreed on a revised price formula and a new price review mechanism. This updated terms negotiated in 2006.
Reza Kasaeizadeh, head of the National Iranian Gas Export Co., said that construction of the Pakistani section of the line would take three to four years. When the line comes on stream, Iran would expect to deliver around 8 bcm/yr to Pakistan, Shana added.