ID :
22728
Sun, 10/05/2008 - 22:19
Auther :
Shortlink :
http://m.oananews.org//node/22728
The shortlink copeid
Iran seeks inclusion of force majeure clause in IPI project
Islamabad, Oct 4 (PTI) Iran has sought an amendment to the gas sale agreement for the I.P.I. pipeline project involving India and Pakistan in an apparent bid to ensure legal cover for itself in the event of disruption of fuel supplies due to any armed conflict it may face.
Iran has informed Pakistan that the term "act of war"
under "excusing event" should be replaced by a suitable
substitute like "situation of armed conflicts or war" in the
draft agreement for the project, Pakistani official sources
told the Daily Times newspaper.
The move is apparently to seek a force majeure clause in
case the seller country, Iran, is faced with an armed conflict
or a war.
Legal experts have recommended that Pakistan could
consider this amendment as it covers armed conflicts between
states rather than groups within a state and it has a material
impact on gas supplies or off takes by the seller or the
buyer.
A meeting of a sub-committee of Pakistan's Economic
Coordination Committee on gas import projects agreed to this
proposal and recommended that the government should negotiate
with Iran on the basis of suggestions made by legal experts.
After agreeing on a gas price formula on October 23,
2007, Pakistan and Iran had agreed in principle to sign the
gas sales and purchase agreement for the USD 7.4 billion
project in the next two months.
However, many amendments, proposed by Iran and India,
have delayed the signing of the agreement for an indefinite
period.
The latest amendment proposed by Iran requires further
negotiations between the contracting countries and will
further delay the signing and implementation of the agreement,
the sources said.
Domestic gas reservoirs in Pakistan have almost depleted
and the demand for gas is on the rise due to economic growth.
The supply-demand gap is expected to be 26 mmscmd in
2011-12, 77 mmscmd in 2015 and 293 mmscmd in 2025.
If the agreement is implemented, Iran will start
supplying gas to Pakistan by 2013. Pakistan and Iran will
build the pipeline in their respective territories.
The proposed 2,670-km pipeline project includes about
1,115 km in Iran, 705 km in Pakistan and 850 km in India.
Iran has informed Pakistan that the term "act of war"
under "excusing event" should be replaced by a suitable
substitute like "situation of armed conflicts or war" in the
draft agreement for the project, Pakistani official sources
told the Daily Times newspaper.
The move is apparently to seek a force majeure clause in
case the seller country, Iran, is faced with an armed conflict
or a war.
Legal experts have recommended that Pakistan could
consider this amendment as it covers armed conflicts between
states rather than groups within a state and it has a material
impact on gas supplies or off takes by the seller or the
buyer.
A meeting of a sub-committee of Pakistan's Economic
Coordination Committee on gas import projects agreed to this
proposal and recommended that the government should negotiate
with Iran on the basis of suggestions made by legal experts.
After agreeing on a gas price formula on October 23,
2007, Pakistan and Iran had agreed in principle to sign the
gas sales and purchase agreement for the USD 7.4 billion
project in the next two months.
However, many amendments, proposed by Iran and India,
have delayed the signing of the agreement for an indefinite
period.
The latest amendment proposed by Iran requires further
negotiations between the contracting countries and will
further delay the signing and implementation of the agreement,
the sources said.
Domestic gas reservoirs in Pakistan have almost depleted
and the demand for gas is on the rise due to economic growth.
The supply-demand gap is expected to be 26 mmscmd in
2011-12, 77 mmscmd in 2015 and 293 mmscmd in 2025.
If the agreement is implemented, Iran will start
supplying gas to Pakistan by 2013. Pakistan and Iran will
build the pipeline in their respective territories.
The proposed 2,670-km pipeline project includes about
1,115 km in Iran, 705 km in Pakistan and 850 km in India.
