By SPA
Islamabad : Pakistan and Iran will sign a gas sales and purchase agreement (GSPA) for their cross-border pipeline project next week, following a clearance by the Economic Coordination Committee (ECC) on Tuesday, the caretaker minister for petroleum and natural resources, Ahsanullah Khan, said at a news conference on Monday.
The English daily “DAWN” quoted Ahsanullah as saying that the gas price finalized for the project, on the basis of the Japan Crude Cocktail (JCC), would be 40 per cent less than the current furnace oil prices and cut the oil import bill by about one billion dollars.
He said three options for pipeline diameter were currently under consideration: 36 inches, 42 inches and 56 inches and would depend on India’s decision to join the project or otherwise.
Ahsanullah said Pakistan would welcome Indian participation in the project at any stage, but clarified that New Delhi had not given a clear response so far.
Meanwhile, Ahsanullah said the overall loss to the oil and gas sector due to three days of violence was to the tune of One billion Pakistani Rupees.