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China says no to Pakistan link

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ssheppard

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A senior Chinese government official has revealed that the country has backed away from a plan to install a major gas pipeline from Pakistan to China, thus dealing an indirect blow to a recently-approved project to install a key trunkline from Iran to Pakistan.

The pipeline to China was proposed as an important extension to the Iran-Pakistan link.

The Chinese official told Upstream that the National Energy Agency (NEA) has discussed the project several times and has opted not to pursue it for at least the next five years.

He said the pipeline project has questionable economic feasibility and technical reliability, as it will run through high mountains with complex terrain, giving rise to concerns of operational safety and maintenance requirements.

"We would prefer instead to import gas from Iran directly," he said.

His comments were made just days after Pakistan and Iran endorsed an agreement to build a pipeline to export Iranian gas from the South Pars field to Pakistan.

That pipeline is planned for installation from Iran's Assaluyeh Energy Zone in the south, stretching over 1100 kilometres through Iran, and passing through Balochistan and Sindh in Pakistan. The route was said to be subject to change if China were to take part.

China National Petroleum Corporation (CNPC), which has signed an initial agreement with National Iranian Oil Company (NIOC) to develop the 11th phase of the South Pars project, had earlier done some study work on the pipeline.

It was listed by CNPC as one of only a few gas pipelines it planned to build outside China. But the study also referred to security concerns in Pakistan and political complexities in Iran as major hurdles for the project ahead of a final investment decision.

"One of the gas pipelines that may see construction start during the 2010 to 2015 period is the Iran-Pakistan-India-China pipeline," Zhao Zhiming, deputy executive director of China Petroleum & Petrochemical Industry Equipment Association, told the China International Oil & Gas Pipeline Summit in Beijing last week.

However, the official, who preferred to remain anonymous, said China has now shifted its focus to building a gas pipeline from Burma to China, with construction scheduled to officially start sometime this year.

Hojjatollah Ghanimifard, Iran's special envoy to the $7.4 billion pipeline talks and deputy head of investment at NIOC, said he hoped the deal with Pakistan will pave the way for first gas to flow by 2014. The initial throughput is pegged at 22 billion cubic metres per annum, growing to 55 Bcm at a later stage.

The 2700-kilometre pipeline was initially supposed to supply gas to India as well, but this element was excluded from the contract after China walked away from the negotiations last year, partly due to concerns about US sanctions relating to Iran's nuclear programme.

The report said that the Pakistani government on 20 March approved Iran's proposed pricing formula for gas supplies.

The proposal to link that pipeline to China's Xinjiang region would have involved an extension of at least 1000 kilometres, passing through one of the world's highest and most geologically complex mountain ranges through the Karakoram highway.


China says no to Pakistan link - Upstream Online
 
"We would prefer instead to import gas from Iran directly," he said.

Hmmmm....

At least now Pakistan should realize China is all about business, just like US. They dropped the plan just to save a little money and their are members here who expect china to nuke India and wipe us off the world map.

Its just China vs USA in the world now. These two expansionists. They both are using any country that they can extract the max out of, and then they'll abandon them. They are here for their profits, and domination not ours.
 
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A senior Chinese government official has revealed that the country has backed away from a plan to install a major gas pipeline from Pakistan to China, thus dealing an indirect blow to a recently-approved project to install a key trunkline from Iran to Pakistan.

The pipeline to China was proposed as an important extension to the Iran-Pakistan link.

The Chinese official told Upstream that the National Energy Agency (NEA) has discussed the project several times and has opted not to pursue it for at least the next five years.

He said the pipeline project has questionable economic feasibility and technical reliability, as it will run through high mountains with complex terrain, giving rise to concerns of operational safety and maintenance requirements.

"We would prefer instead to import gas from Iran directly," he said.

His comments were made just days after Pakistan and Iran endorsed an agreement to build a pipeline to export Iranian gas from the South Pars field to Pakistan.

That pipeline is planned for installation from Iran's Assaluyeh Energy Zone in the south, stretching over 1100 kilometres through Iran, and passing through Balochistan and Sindh in Pakistan. The route was said to be subject to change if China were to take part.

China National Petroleum Corporation (CNPC), which has signed an initial agreement with National Iranian Oil Company (NIOC) to develop the 11th phase of the South Pars project, had earlier done some study work on the pipeline.

It was listed by CNPC as one of only a few gas pipelines it planned to build outside China. But the study also referred to security concerns in Pakistan and political complexities in Iran as major hurdles for the project ahead of a final investment decision.

"One of the gas pipelines that may see construction start during the 2010 to 2015 period is the Iran-Pakistan-India-China pipeline," Zhao Zhiming, deputy executive director of China Petroleum & Petrochemical Industry Equipment Association, told the China International Oil & Gas Pipeline Summit in Beijing last week.

However, the official, who preferred to remain anonymous, said China has now shifted its focus to building a gas pipeline from Burma to China, with construction scheduled to officially start sometime this year.

Hojjatollah Ghanimifard, Iran's special envoy to the $7.4 billion pipeline talks and deputy head of investment at NIOC, said he hoped the deal with Pakistan will pave the way for first gas to flow by 2014. The initial throughput is pegged at 22 billion cubic metres per annum, growing to 55 Bcm at a later stage.

The 2700-kilometre pipeline was initially supposed to supply gas to India as well, but this element was excluded from the contract after China walked away from the negotiations last year, partly due to concerns about US sanctions relating to Iran's nuclear programme.

The report said that the Pakistani government on 20 March approved Iran's proposed pricing formula for gas supplies.

The proposal to link that pipeline to China's Xinjiang region would have involved an extension of at least 1000 kilometres, passing through one of the world's highest and most geologically complex mountain ranges through the Karakoram highway.


China says no to Pakistan link - Upstream Online

it means the gas pipeline from Burma to China will be Burma-Bangladesh-India-China gas pipeline:cheers::china:: India flag:: Bangladesh flag::burma flag:
 
Americans wanted to Torpedo this project & seems they are doing it with a Nuclear Submarine :D
 
If China imports directly from Iran even thats a good move.

Whats the big fuss about it? China was never officially a part of the project rather there had been reports that China was considering to join
 
China coming on board would prolong the negotiations and pro long the time to implement and complete the project..Therefore no big deal things are going great for Pakistan we are concerned with our problems that we need to tackle with and cure them..Chinese later on will join they can let go things that easily.
 
Hmmmm....

At least now Pakistan should realize China is all about business, just like US. They dropped the plan just to save a little money and their are members here who expect china to nuke India and wipe us off the world map.

Its just China vs USA in the world now. These two expansionists. They both are using any country that they can extract the max out of, and then they'll abandon them. They are here for their profits, and domination not ours.

Yes, that's right.

What states can do is to become the hegemon in their own region of the world. In other words, a country can become a regional hegemon, not a global hegemon. But furthermore, what such a state want to do, is to make sure that there are no other regional hegemons on the face of the earth. In other words, they don't want to have a peer competitor.


Let's take the United States, for example. The United States is a regional hegemon in the Western Hemisphere. The United States does not want a regional hegemon in Europe, whether it's Germany or Russia or EU, because it would fear that if that state had no competitors in its region, if it were the dominant state, it would be free to interfere and form alliances with states in the Western Hemisphere, and possibly threaten the security of the United States. So from the American point of view, the best situation that you could have in Europe is for there to be two or more great powers that focus most of their attention on each other, and therefore are much less concerned about what's going on in the Western Hemisphere.

So the United States, over time, has gone to great lengths to make sure that there is no regional hegemon in either Europe or Asia, the areas of the globe where there are other great powers and fear there may be a potential peer competitor. CHINA is no exception. The way they have a good relationship with Pakistan is because they want to engage India with Pakistan and so cut a potential PEER COMPETITOR.

These two are slaves of thier own EXPANSIONIST mindset. All the policies and alliances are in the direction of these goals.

Fighter
 
Hmmmm....

At least now Pakistan should realize China is all about business, just like US. They dropped the plan just to save a little money and their are members here who expect china to nuke India and wipe us off the world map.

LOL..funny! Always look for an opportunity to troll against Pakistan. No matter if it makes sense or not.

China has not refused any offer to Pakistan, its Iran selling gas not Pakistan. Pipeline through Pakistan was one of the option for transfer of gas, they have opted for the other one. Because of feasibility and economic benefit and cost reduction and technical reliability.

He said the pipeline project has questionable economic feasibility and technical reliability, as it will run through high mountains with complex terrain, giving rise to concerns of operational safety and maintenance requirements.

The proposal to link that pipeline to China's Xinjiang region would have involved an extension of at least 1000 kilometres, passing through one of the world's highest and most geologically complex mountain ranges through the Karakoram highway.

The 2700-kilometre pipeline was initially supposed to supply gas to India as well, but this element was excluded from the contract after China walked away from the negotiations last year, partly due to concerns about US sanctions relating to Iran's nuclear programme.

These are the three main concerns of China, but unfortunately [China says no to Pakistan] was only blinking in minds while reading the post. And I also doubt the intelligence of the author of the story or the editor of source website, who doesnt even know that these deals are carried on with Iran.

Why invest Billion dollars and time when you not going to get enough benefit from such longterm construction plan and when there is already an easy and safe way existing to carry on the job!!!!

On the other hand China is already sharing border with Burma where they can directly carry pipeline from Burma, which is a lot cheaper and less technical complexities.
china map - Google Maps


They dropped the plan just to save a little money and their are members here who expect china to nuke India and wipe us off the world map.

PAKISTAN HAS ITS OWN NUKES TO SERVE THE PURPOSE.

Pakistan never wants China to compromise its own interests to benefit us. We do encourage such a step. Seems like some one is desperately uncomfortable with Pakistan-China relations.

And at least China went for its own benefit unlike India which had to drop the plan to please their new masters (USA).:pakistan:

Moral of the story: Refrain to drag Pakistan in every next argument unnecessarily.:pakistan::pakistan::pakistan:
 
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Its just China vs USA in the world now. These two expansionists. They both are using any country that they can extract the max out of, and then they'll abandon them.

wow,i don't know indian can interpret so much from ten words....
don't worry ,guys.even without this pipeline,there are still planty of others projects between the two countries ,and this news hasn't been confirmed yet....

which country china "abandoned" or "maxed out" before anyway.....
 
LOL..funny! Always look for an opportunity to troll against Pakistan. No matter if it makes sense or not.

I am not trolling. Its just an advise. Look at it globally, can't you see the pressure rising? Its just US and China right now.

Read Fighter's post. He explains it pretty good.

US doesn't want competition. It doesn't want to lose its dominance. China on the other hand has realized that it can become the next US and hence is trying its best to become the next dominator. Meanwhile, like US, China is also making sure that India is not allowed to match China. India too has the potential and China knows it and hence its playing every trick in the bag to stop India.

China plays Pakistan against India to stop our development.

US on the other hand realizes its good if it doesn't have to get its hands dirty too. So it is playing India against china to stop China.

So all in all, its US vs China, but India and Pakistan are being used during the process.
 
China plays Pakistan against India to stop our development.

:rofl::rofl:

Sardar Ji Every dirty weapon has been Introduced in South Asia by you and then you blame us that we are causing Problems.

Indian Members Continuously say one thing that Pakistan shouldn't blame it's Problem on India.Well same Stands for India too.
 
I am sure that all members – especially the Chinese – are aware that Iran negotiated a deal with China to export 10 Million Tonnes of LNG annually for 20 to 25 Years at about USD 4 per MMBTU.

This deal was subject to “Iranian Parliament’s” Approval.

As Oil Prices started rising the Iranian Parliament did not grant approval to the deal, same as the case with India wherein Natural Gas was to be supplied at USD 3.5 per MMBTU. As such all negotiates were dropped.

Pakistan has now agreed to buying Natural Gas on the basis of 80% of the current Oil Prices. I believe Pakistan is asking to lower this “Mark” and the Iranians have agreed to 78%.

One Ton of Crude Oil is about 7 Barrels which equates to about 40 MMBTU.

Thus basis an Oil Price of USD 70 per Barrel the price of Natural Gas delivered at Iran-Pakistan Border would be USD 70 X 0.8 / 6 = USD 9.33 per MMBTU. At an Oil price of USD 100 per Barrel it would equate to USD USD 13.33.

The cost of transit dues and Pipe Line Charges for the Gas to arrive at China’s East or South Cost would add another Dollar or Two to the price.

This is the reason for China as well as India demurring from buying Iranian Gas via a Pipe Line through Pakistan on the basis of the Iran-Pakistan Formula.

All stories about USA "Threatening" Pakistan as well as India are just stories.

When Iran prices its Gas realistically than China as well and India will beat a Path to the Iranian Door.
 
Hmmmm....

At least now Pakistan should realize China is all about business, just like US. They dropped the plan just to save a little money and their are members here who expect china to nuke India and wipe us off the world map.

Its just China vs USA in the world now. These two expansionists. They both are using any country that they can extract the max out of, and then they'll abandon them. They are here for their profits, and domination not ours.


Nothing on earth can make them realize truth, not too soon. This is a gradual process they have to think rationally for that.
 
Actually, alot of people have already said the china joining this was not feasable, if you go back to the thread about the signing of this deal, you will find it was already said that china would find it very difficult to join as the terrain and feasibility are almost too great to overcome.
 
I am sure that all members – especially the Chinese – are aware that Iran negotiated a deal with China to export 10 Million Tonnes of LNG annually for 20 to 25 Years at about USD 4 per MMBTU.

This deal was subject to “Iranian Parliament’s” Approval.

As Oil Prices started rising the Iranian Parliament did not grant approval to the deal, same as the case with India wherein Natural Gas was to be supplied at USD 3.5 per MMBTU. As such all negotiates were dropped.

Pakistan has now agreed to buying Natural Gas on the basis of 80% of the current Oil Prices. I believe Pakistan is asking to lower this “Mark” and the Iranians have agreed to 78%.

One Ton of Crude Oil is about 7 Barrels which equates to about 40 MMBTU.

Thus basis an Oil Price of USD 70 per Barrel the price of Natural Gas delivered at Iran-Pakistan Border would be USD 70 X 0.8 / 6 = USD 9.33 per MMBTU. At an Oil price of USD 100 per Barrel it would equate to USD USD 13.33.

The cost of transit dues and Pipe Line Charges for the Gas to arrive at China’s East or South Cost would add another Dollar or Two to the price.

This is the reason for China as well as India demurring from buying Iranian Gas via a Pipe Line through Pakistan on the basis of the Iran-Pakistan Formula.

All stories about USA "Threatening" Pakistan as well as India are just stories.

When Iran prices its Gas realistically than China as well and India will beat a Path to the Iranian Door.


Yes the real reason is price, as per Govt. thinking the route to pakistan will be risky and pakistan will earn revenue without providing security to the pipe line. They asked for security guarantee but pakistan said no to it.

Then they have discussed the under the sea route, that was also expensive.

Then they comes to concludes that the gas can be supplied by ships this will be more safe and affordable option.


Qatar is world’s largest LNG exporter and just today offered India 4 million tonne LNG, but the price are too high. We are now negotiating with them as we are getting very good amount of gas from our own Krishna Godavari Basin in India by Reliance @ US$ 4.20 MBTU

Qatar agrees to supply extra 4 million tonne LNG to India Link

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