Consortium of Iran-Pakistan Gas Pipeline Formed

Pakistani Petroleum Minister Asim Hossein said a consortium of banks has been formed to finance the Iran-Pakistan gas pipeline project.

He went on to say that, an offer of $1.4 billion loan for the project had already been made, Iran's SHANA news agency reported.

Addressing traders at the office of Korangi Association of Trade and Industry (KATI), he said the progress in Iran-Pakistan Gas project was moving ahead of its schedule and the consortium had been formed with the cooperation of ICB.

He stated that terms were being discussed after the offer of $1.4 billion loan for the project. He had also earlier informed that the Iran-Pakistan gas pipeline project would be completed by 2013, one year a head of schedule.

In June 2009, Tehran and Islamabad signed a 25-year agreement based on which Iran agreed to export 7.8 billion cubic meters of natural gas to Pakistan per annum through pipeline. According to the agreement, the pumping of gas will start from February 2014.