Tehran, Islamabad sign deal on building oil refinery for Pakistan

Islamabad, Feb 23 IRNA -- Iran and Pakistan signed an agreement for building an oil refinery in the Southwestern Pakistani city of Gwadar, Pakistani media reported on Thursday. Based on this report, Pakistani officials declared that Islamabad and Tehran have reached an agreement according to which Iran will help Pakistan construct an oil refinery. Pakistani Advisor to Prime Minister on Petroleum and Natural Resources, Dr. Asim Hussain, said Wednesday that Iran with the cooperation of Pakistanˈs State Oil (PSO) will set up an oil refinery in the Southwestern city of Gwadar. Talking to reporters after holding a meeting with Iranian Oil Minister Rostam Qassemi, he said that the refinery would refine 400,000 barrels of oil per day. He added that Pakistani President Asif Ali Zardari would soon visit Iran to finalize the agreement on establishment of oil refinery. Qassemi and Managing Director of the National Iranian Gas Company (NIGC) Javad Oji arrived in Pakistan earlier this week to hold the final talks on the IP gas pipeline construction. The Iranian oil minister and his accompanying delegation agreed with their Pakistani counterpart to set up a joint contracting company between the two countries in a bid to complete the construction of the IP gas pipeline in next 15 months. The mega project will come on stream in December 2014. Apart from it, both countries also discussed the finances involved in the project. The interest rate for Iranˈs 500-million-dollar loan to Pakistan and the date for the start of the repayment of the loan by Pakistan were among other topics in the discussions. Last week, Tehran and Islamabad discussed the scope of work under the mega project of $1.5 billion IP gas pipeline. Pakistani President Asif Ali Zardari underlined his support for the completion of Iran-Pakistan gas pipeline which will help alleviate Pakistanˈs energy crisis. Zardari said that Pakistan attaches great importance to the early completion of Iran-Pakistan Gas Pipeline project in view of the energy crisis in the country, and called for stepped up efforts for early completion of all Pak-Iran bilateral projects. The IP gas pipeline stretches from Iran-Pakistan border to Navabshah region in Pakistan and it covers 781 km of the total 1,881 km of the pipeline.