Posted on 04/09/2015 12:52:30 PM PDT by Rusty0604
ISLAMABAD: In an attempt to curtail Pakistan’s severe energy shortage, China has agreed to build a pipeline bringing natural gas from Iran to Pakistan. The final deal is to be signed during the long-sought visit of the Chinese President Xi Jinping to Islamabad in April, Pakistani officials said.
Where most countries are unwilling to invest in Pakistan given the current situation, this deal is expected to mark China’s commitment towards the development of infrastructure in ally Pakistan.
The pipeline would amount to a premature profit for both Pakistan and Iran due to the agreement between Tehran and the US and other world powers to prevent Iran from developing nuclear weapons.
Pakistan had previously been threatened with sanctions by the US if it carried on with the project.
The estimated cost is $1.5 billion to $1.8 billion for the pipeline, or $2 billion if an optional LNG terminal at Gwadar is included in the scheme. According to the deal, 85% of the financing will be provided by a Chinese loan, with Pakistan coming up with the rest.
Sources say, other than threatening Pakistan with sanctions, the US had also been urging it to invest in the Turkmenistan pipeline instead of the Iranian one.
Pakistan has had a close strategic alliance with China for decades — aimed mostly against common foe India — but now Beijing is seeking to add an economic dimension to the relationship.
(Excerpt) Read more at tribune.com.pk ...
China and India are big trading partners with Iran.
I wonder how this will play with any Saudi Arabia plan for Pakistani nukes to counter Iran?
I was thinking the same. Maybe that is why Pakistan decided not to help Saudi bomb Yemen.
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