Iranian petroleum minister says the Islamic Republic of Iran has multiple plans to meet natural gas demand of the neighboring and friendly countries and by this way to create a comfort environment to supply energy to the region and world markets.

On the sidelines of the signing ceremony of the last annexes of the Iran- Pakistan gas pipeline and authorization of the contract on Sunday, Dr. Masoud Mirkazemi, the Iranian petroleum minister, said: I would like to state clearly that the Islamic Republic of Iran, as one of the holders of the biggest gas reserves in the world, would play a big role in meeting of the energy security.

Noting that gas export to Pakistan will start from the year 2014, the petroleum minister said that Iran would be one of the important players in meeting energy security in the gas sector.

Concerning the argument of applying different gas sale formula for Turkey and Pakistan, the petroleum minister said that the formula for exporting gas to both of them is the same.

Dr. Mirkazemi said that the gas for export to Pakistan would be provided from ongoing phases of the giant South Pars gas field.

He further noted that Iran-Pakistan gas pipeline would pass from provinces of Fars, Hormozgan, kerman and Sistan o Balochestan to reach Pakistani border.

Mirkazemi said: up to now, 900 km of the pipeline with a diameter of 56 inches has been implemented from Assaluyeh to Iranshahr in the Sistan o Balochestan province with a capacity of transferring 110 mcm of gas per day.

The petroleum minister remarked that iran – Pakistan gas pipeline would meet gas needs of the industrial sector of the aforementioned provinces noting that remaining part of the pipeline in Iranian sector with 300 km length, would be implemented from Iranshahr to Chabahar toward Pakistani border. 

Stating that gas export contracts are mainly long term, the petroleum minister stipulated that Iran and Pakistan sale and purchase agreement have a 25 years period and could be extended for another 5 years period.

Concerning Iran and China cooperation in the field of energy, Dr. Mirkazemi noted that the Islamic Republic of Iran has widespread cooperation with China in the oil and gas sector and provides remarkable energy needs of the country. He stressed that the two countries intend to expand the relations in the field of energy.

Pakistan and Iran on Sunday finalized $7.5 billion gas project to start supply of natural gas from Iran to Pakistan from 2014.

The landmark agreement was signed by Iran's deputy oil minister Javad Ouji and a Pakistani delegation including Secretary of Petroleum and Natural Resources Kamran Lashari and Managing Director of Inter-State Gas Company Naeem Sharafat in Tehrn.

"Now the project has entered into a new phase and there are no further formalities left in its way," Naeem Sharafat said.

He said the IP project was another testimony to the long historic and cordial relations between Pakistan and Iran," the official said.

The pipeline will connect Iran's giant South Pars gas field to Pakistan's Balochistan and Sindh provinces.

Pakistan has to construct about 700 kilometers of pipeline from the border to connect to its existing gas transmission network at Nawabshah. A 42-inch diameter pipeline is planned to be built, which is estimated to cost $1.65 billion.

The project is crucial for Pakistan to avert a growing energy crisis, already causing severe electricity shortages in the country and the project would help generate around 5,000 megawatts of electricity.

Under the gas sale and purchase agreement (GSPA), Pakistan will import about 750 million cubic feet of gas per day (mmcfd) with a provision to increase it to one billion cubic feet per day (bcfd).

The volume of imported gas will be about 20 per cent of Pakistan's current gas production and the agreement is valid for a period of 25 years and renewable for another five years.