Re: US threatens Pak with sanctions for trying to solve its energy crisis through Ira
interesting article
Report: Pipe dreams by Ali K Chishti
**Pipe dreams
**
Pakistan is facing the worst energy crises in its history. The country depends largely on natural gas for its energy needs, and as its domestic reserves dwindle, fuel costs are rising, electricity shortage increasing, and businesses are shutting down.
The only hope is a controversial multi-billion dollar import deal with Iran. The “peace pipeline” project for the import of 21.5 million cubic meters of Iranian gas a day was signed in June 2010. The pipeline was initially planned to go all the way to India, but New Delhi left the project after disagreements with Islamabad over issues of terrorism and tariffs.
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[http://www.thefridaytimes.com/beta2/tft/20120120/The originally proposed route of the gas pipeline from Iran.jpg](http://www.thefridaytimes.com/beta2/tft/20120120/large-The originally proposed route of the gas pipeline from Iran.jpg)
The originally proposed route of the gas pipeline from Iran
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**Despite international pressure on Pakistan over trade with Iran, the project is being pursued with support from an invisible partner. “The Chinese are using their influence in Pakistan and Iran and are financing the $1.2 billion Iran-Pakistan gas pipeline through their largest bank, the Industrial and Commercial Bank of China,” said Dean I Patric, an American energy expert who lives in Dubai. He said China also wanted a rail link between the two countries.
Iranian expert Prof Amir Madani said the pipeline could be extended to China and India, helping Pakistan meet its energy needs and collect royalties. But the real importance of the project was its ability to change the geopolitical situation in the region, he added.
“If Iranian energy goes to China and India, it will create a new, dominant pole in the world economy,” he said. “The project is based on collaboration among Iran, Pakistan, India and China, and excludes the US and Saudi Arabia. That is why the US is doing all it can to stop it.”**
According to the proposal, the pipeline will begin from Iran’s Assalouyeh Energy Zone in the south and stretch over 1,100km through Iran, entering Pakistan and passing through Baluchistan to Sindh. But officials say the route may change if China is interested in the project.
Pakistan’s minister for oil and natural resources told the Senate recently that the pipeline would finish by the end of 2013, a year ahead of schedule.
“Pakistan wants to work on the project despite American pressure,” a close aide of the president told The Friday Times.
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[http://www.thefridaytimes.com/beta2/tft/20120120/Iranian engineers work on their section of the pipeline to Pakistan.jpg](http://www.thefridaytimes.com/beta2/tft/20120120/large-Iranian engineers work on their section of the pipeline to Pakistan.jpg)
Iranian engineers work on their section of the pipeline to Pakistan
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But Lawrence Alan Levine, who has worked as a military adviser in the region, denied there was any pressure from the US. The recent sanctions “seek to encourage the Iranian state to comply with internationally recognized prohibitions on the proliferation of nuclear weapons and technology”, he said. But “there is great opportunity for economic growth and development in the region, which can benefit many nations and people, and help bring peace and stability to the region. Many in the US would like to see Iran as a peaceful and progressive partner for peace.”
Indian policy expert and political commentator Desh Kapoor said New Delhi had been competing with Beijing for resources around the world. “The Iran-Pakistan pipeline is something that has lots of risks for India, but India should have still gone ahead with it without making it central to its energy policy,” Kapoor said. “Keeping out of it - however risky the project was - will not allow India to engage with either Iran or Pakistan in the energy sector.”
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Whether Pakistan will able to deal with international and regional conflicts to go ahead with the project is yet to be seen. But with increasing terrorism inside the country and the instability in Balochistan, local experts believe it is a dream that may not come true. **