Wednesday 30 October 2013

INTERNATIONAL ISSUES

‘Iran-Pakistan pipeline unviable’


Ø The report by Sustainable Policy Development Institute (SDPI), titled “Rethinking Pakistan’s Energy Equation: Iran-Pakistan Gas Pipeline”, indicated that since the price of the gas purchased under the Iran-Pakistan pipeline project is linked to crude oil prices, it is unfortunate that the country blatantly ignored the energy dynamics and its pricing while going for this deal.
Ø  The Iran-Pakistan gas pipeline project is not the panacea for Pakistan’s energy problem, but more of a bailout plan. The country will have to look at creative options that are not limited to unconventional and alternate energy sources. Almost 50 per cent energy needs are met through natural gas.
Ø According to the 2013 agreement with Iran, Pakistan will import an amount of one billion cubic feet a day (BCFD). This would last for 20 years with an option to extend it for another five years. Iran has already constructed more than 900 km (out of 1100 km) of the pipeline on its territory at a cost of $700 million. The  country had not taken any substantial step to initiate the process of tapping the country’s shale gas potential except developing a framework.
Ø The agreement with Iran stipulates construction of Pakistan’s side of the pipeline by December 2014. If Pakistan fails to meet this deadline it will be liable to pay heavy daily penalties, which can run into a million dollars per day.


Dubai airport, set to be world’s largest, opened to passengers

Ø The Gulf emirate of Dubai on Sunday (27 October 2013)  opened passenger operations at its second airport, Al-Maktoum International, touted to be the world’s largest once it is completed.













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