While higher discretionary income due…
U.S. shale output has fallen…
Pakistan had applied to Iran for a six-month wavier in beginning a bilateral natural gas pipeline project in order to avoid a $200 million penalty fee.
The $3 billion Iran-Pakistan natural gas pipeline project, which earlier was scheduled to begin operations by 31 December 2014, will now be delayed until June 2015, Islamabad’s The News Online reported.
According to a high ranking official in Pakistan’s Ministry of Petroleum and Natural Resources, speaking on condition of anonymity, "The authorities in Tehran are considering Pakistan's proposal and will come up with their reply in the meeting of Iran-Pakistan Coordination Committee that is scheduled for August 25. We are quite confident that Pakistan will be able to complete the project well before December 31, 2014, as we have completed the survey for laying the pipeline from MP 250, a point at Pak-Iran border, to Nawabshah but we have sought the waiver only to avert the penalty of $200 million, which will be imposed under the take and pay clause of the agreement if Pakistan misses the December 31, 2014 deadline. There are some unforeseen factors that have appeared as hurdles in starting phase-1 on time as Pakistan is at war with militants and faced with an appalling law and order situation in Balochistan."
By. Charles Kennedy, Deputy Editor OilPrice.com
Charles is a writer for Oilprice.com