Peace pipeline

Finally there is a good news for energy starved Pakistan. After prolonged negotiations lasting 15 years, the agreement on gas pipeline was signed on June 4, in Turkey between Pakistan and Iran.
Pakistan has been exploring possibilities of a long-range arrangement to ensure regular supply of gas to meet its current and future requirements. Among a number of proposals examined for an assured supply, tripartite agreements with Iran, involving Pakistan and India, popularly known as IPI pipeline has been under discussion since 1995, when it was first conceived. Differences on price fixing formula and the US opposition to cooperative relations with Iran branded as an Axis of evil further complicated the issue and delayed the agreement. Under strong pressure from US the Indian government wilted and withdrew from the project in 2008.
Indian withdrawal radically altered the prospects and caused further delays. Pakistan however resisted the US pressure and the gas pipeline agreement was finally signed in Turkey on June 5, 2009, following on Inter-Governmental Framework Declaration on May 24. As per the Gas Sales and Purchase Agreement (GSPA) Pakistan will purchase 750 million CFd per day over the next 25 years. Renewable for another five years, delivery point of the gas will be at Iran-Pakistan border near Gwadar at a minimum pressure of 55 Barg (800 psig). The project on completion will be able to support 4000 MW of power generation capacity. Sources in the ISGS said that designing and finalisation of reports of financial consultants would take at least one year and work on the project "can start by mid-2010." link...