Pakistan has rejected reports about Saudi Arabia’s opposition to the Iran-Pakistan (IP) gas pipeline project, saying that Islamabad will not tolerate any foreign pressure on the plan.

 

A spokesman of Pakistan’s Ministry of Foreign Affairs told reporters in Islamabad that his country is determined to complete the multi-billion-dollar pipeline project with Iran and no external pressure would be tolerated in this regard, Press TV reported.

 

Saudi Arabia -- a key ally of the U.S. -- has reportedly opposed the IP gas pipeline and sent a message to Islamabad, offering an “alternative package” to meet Pakistan’s growing energy needs so that it can cancel the project.

 

Unnamed diplomatic sources in Pakistan said Saudi Arabia has asked the Pakistani government to reconsider its decision to pursue energy cooperation with Iran, which includes the construction of the IP gas pipeline and purchasing electricity and oil from Tehran.

 

Saudi Arabia is said to have offered Pakistan a loan for the construction of a new oil facility to help the country extricate itself from its financial and energy crises.

 

The Pakistani spokesman added that Russia has offered Islamabad financial assistance for the completion of the IP project, which would transport Iranian natural gas to Pakistan, and noted that negotiations are underway in this regard.

 

On March 28, Pakistani Petroleum Secretary Ijaz Chaudhry said that a Russian company has shown interest in investing in the project, estimated in costs at $1.5 billion.

 

Pakistan decided to seek financing from Russia after the Industrial and Commercial Bank of China, a state-owned Chinese bank, which had initially agreed to finance the Pakistani section of the IP gas pipeline, indicated that it was no longer interested in the project.

 

Energy-hungry Pakistan is looking to increase its fuel imports from various sources, including Iran, to reduce power shortages that have crippled the country’s industries and shaved percentage points off its GDP growth.

 

Washington has frequently indicated its strong opposition to the IP gas pipeline project. An article published in the International Herald Tribune on January 25 said Washington is trying to lure Islamabad away from the project by offering cheaper gas to the country.

 

The gas pipeline is projected to export 21.5 million cubic meters per day (or 7.8 billion cubic meters per year) of Iranian natural gas to Pakistan.

 

The maximum daily gas transfer capacity of the 56-inch pipeline, which traverses over 900 kilometers of Iranian territory from Assalouyeh in Bushehr Province to Iranshahr in Sistan-Baluchestan Province, has been cited as 110 million cubic meters.

 

(Source: Press TV)