Pakistan to be supplied with 8 billion cubic metres of Iranian gas annually

Nicosia, May 29 (ANI): Iran and Pakistan on Thursday signed in Tehran a deal for the supply of eight billion cubic meters of natural gas annually under an agreed price formula which has not been disclosed.

Representatives of the two countries also signed an initial agreement for the construction of the Iran-Pakistan-India (IPI) gas pipeline, which is expected to cost more than 7.5 billion dollars and has been dubbed "The Peace Pipeline."

It is expected that gas deliveries will start in three to four years.

According to the Fars News Agency, Iranian President Mahmoud Ahmadinejad and his Pakistani counterpart Asif Ali Zardari agreed to the 2,100 km-long pipeline that would transfer Iranian gas to Pakistan.

Terhran says both Iran and Pakistan would welcome India if it decided to join the project The IPI pipeline will be supplied from the South Pars Gasfield. The initial capacity of the pipeline will be 22 bcm of natural gas per annum, which is expected to be raised later to 55 bcm . (ANI)