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Iran-Pakistan Gas Pipeline to be Functional by 2015

04/13/11 Source: Moj News

Iran-Pakistan gas pipeline will be operational by 2015 helping bridge the increasing gap between demand and supply of gas in Pakistan, Minister of Water and Power Seyyed Naveed Qamar said.

"We are supposed to start taking gas through Pak-Iran gas pipeline project from Dec 2015," the minister said.

"At this stage, there was no proposal under consideration to include another country in the Pak-Iran gas pipeline project," Qamar added.

He said a team of experts was going to visit Tehran on Tuesday to discuss the general sales agreements with Iranian authorities.


India's Essar Aims to Source More Iran Heavy Crude

India's Essar Oil Ltd. plans to source more heavy-quality crude from Iran as it expands its refinery in the western Indian state of Gujarat, the company's managing director Naresh Nayyar said Monday.

"Post expansion we will be able to process a much heavier crude diet. Iran fortunately is also producing certain very heavy crude," Nayyar told reporters during a conference call to announce the company's quarterly results. "Our focus will be to increase the quantity of such type of crude and reduce quantity of crude of lighter category."

Processing heavier-quality cheaper crude will help Essar expand its gross refining margin.

An Essar team will go to Iran to discuss the composition of crude, he said.

Essar Oil's refinery at Vadinar in Gujarat has a nameplate capacity of 10.5 million metric tons a year. The company is in the process of expanding the capacity to 18 million tons in a phased manner by September and further to 20 million tons by September 2012, it said in a statement Monday.

The refinery processed 14.76 million tons of crude oil in the year ended March 31, well above its nameplate capacity.

Essar currently sources 3 million barrels per month crude from Iran. Nayyar said increasing or reducing supplies from Iran will "depend on economics."

Essar processed 81% heavy and ultra heavy crude and 19% light crude in January-March quarter, he said.

Nayyar added that crude supplies from Iran are currently normal and there is no disruption. "We continue to take our requirement of crude oil from Iran."

India's crude supplies from Iran were under threat after the Reserve Bank of India stopped payments to Iran through the Asian Clearing Union in December. The two countries had made temporary arrangements for payments and were negotiating a new payment mechanism.

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